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

Explain the most competent and respected individuals dictate, Norms are the...

Norms are the unwritten rules that specify appropriate and expected behaviour in teams. Which of the following statements is most true about norms in a team? a. It is best to not i

Explain insufficient to handle the increased workload, A company that produ...

A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering t

Case analysis, 18 carpets were observed colsely and the number of defects i...

18 carpets were observed colsely and the number of defects in their texture was noted.Draw a control chart for the number of defects no.of.defects: 0 1 2 3 4 5 6 no.of carpets: 0 1

Explain toyota and the recalls, Discuss why organizations need to have the ...

Discuss why organizations need to have the correct performance metrics to drive quality. Think of examples in the news and their outcomes. For example: • Toyota and the recalls • B

Depict the monthly sales data on a sheet of graph paper, 1. The monthly sal...

1. The monthly sales for Telco Batteries, Inc., were as follows: Month Sales Jan 20 Feb 21 Mar 15 Apr 14 May 13 Jun 16 Jul 17 Aug 18 Sep 20 Oct 20 Nov 21 Dec 23 a. Plot the m

Operational layout , Put Simply, operational layout is about deciding where...

Put Simply, operational layout is about deciding where to put all the facilities, machines, equipment and the staff with in the operation. For an organization of you choice discuss

Explain the ten commandments of america culture, Go toto gmi.org and search...

Go toto gmi.org and search for "The Ten Commandments of America Culture." The list presents ten sayings that represent commonly accepted American cultural values. Think about how t

Explain actual and forcasted demand level, The following are monthly actual...

The following are monthly actual and forcasted demand level for may through December for units of product manufactured by N. Month Actual demand Forecast demand May 100 102

What is the mixed strategies range, For the given matrix, what is the mixed...

For the given matrix, what is the mixed strategies range , Bob could make use  to dominate Middle ? Assume three Offices (A, B, and C) in downtown,  simultaneously decide whethe

Discuss whether a company must have balance set of managers, Discuss whethe...

Discuss whether a company should have a balance set of managers of equal diversity background as employees. Support your answer.

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