Testing the optimality, Operation Management

Assignment Help:

Testing the Optimality: After obtaining the initial basic feasible solution the next step is test whether it optimal or not. There are two methods of testing the optimality of a basic feasible solution.

The first of these is called the stepping stone method in which the optimality test is applied by calculating the opportunity cost of each empty cell.

The second method employed for testing optimality is called the modified distribution method ( MODI). The method is easier and more efficient than the stepping stone method. It is based on the concept of the dual variables that are used to evaluate the empty cells. Using these dual variable the opportunity cost of each of the empty cells is determined. The opportunity cost values in both the methods indicate the optimality or otherwise of a given solution.

Improving the Solution: By applying either of these methods if the solution is found to be optimal then the problem is solved. If the solution is not optimal then a new and better basic feasible solution is obtained.. it is done by exchanging a non basic variable for one basic variable. In simple terms rearrangement is made by transferring units from an occupied cell to an empty cell that has the largest opportunity cost and then shifting the units from other related cells so that all the rim requirements are satisfied. This is achieved by first tracing a closed loop.


Related Discussions:- Testing the optimality

How several more hours of overtime would each worker, Games4U makes video g...

Games4U makes video games on CDs at its Old Town plant. The plant produces 800 games each day, and employs 100 workers that work 8 hours each day. They use the following resources

Process charts, Process Charts Process chart is the diagrammatic repr...

Process Charts Process chart is the diagrammatic representation of various tasks and activities in sequence of operation passing through the production process beginning with

Calculate the path mean and network diagram, For the following data: ...

For the following data:   Time (in Days)   Activity Immediate Predecessor Optimistic Most Likely

#Process design plant locatiom.., Relation with types of manufacturing plan...

Relation with types of manufacturing plant location and layout.?

Explain what is the multifactor productivity for each system, A grocery cha...

A grocery chain is considering the installation of a set of 4 self-checkout lanes. The new self-checkout lane setup will replace 2 old cashier lanes that were staffed by a cashier

Explain what is the time between orders, The current order quantity for Pau...

The current order quantity for Paul's Pasta Pinwheels is 200 boxes. The order cost is $4 per order, the holding cost is $0.40 per box per year, and the annual demand is 500 boxes p

Risks or opportunities of the strategies followed by pepsi, What are the ri...

What are the risks and opportunities of the strategies followed by Pepsi? of Coca Cola?

Explain differentiate between a workcentre, Differentiate between a WorkCen...

Differentiate between a WorkCentre and a manufacturing cell

Financial risk, the importance of the measurtement of market risk for finan...

the importance of the measurtement of market risk for financial institution

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd