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 benefit from integreated software, How can a university, which is a...

How can a university, which is also a service organizaiton, benefit from integreated software?

Explain what makes one campaign better than the other, Suppose that a small...

Suppose that a small publisher selling to book distributors has fixed operating costs of $600,000 each year and variable costs of $3.00 per book. How many books must the firm sell

Explain what are the four main reasons for holding inventory, 1. What facto...

1. What factors enter into the choice of a value for the smoothing constant in exponential smoothing? 2. Name at least 3 competitive advantages of concurrent engineering? 3.

Objectives of good layout, Objectives of Good Layout Any of the follow...

Objectives of Good Layout Any of the following objectives might be achieved through a good layout: Provide enough production capacity. Reduce material handlin

Explain actionable claim for discrimination under ada, 1. If Rosa hires Cal...

1. If Rosa hires Caleb and after working for two months, Caleb requests additional time off to take care of his ailing wife and Rosa denies his request: A. Caleb has an actionab

Circumstances is a code of ethics most as well least likely, Under what cir...

Under what circumstances is a code of ethics most and least likely to be effective? Why?

Customer satisfaction and service quality, Customer Satisfaction and Servic...

Customer Satisfaction and Service Quality - Operation Strategy Although you have seen examples of the dimensions along which companies compete and approaches to operations st

Give specific example of all type of strategy marketing plan, Imagine that ...

Imagine that you are creating a marketing plan for a company that will sell motor scooters . As you consider the marketing program, what types of strategy should you consider inc

Compute the trend-adjusting exponential smoothing forecast, Tough Face, a m...

Tough Face, a manufacturer of rock-climbing gear, been enjoying steady growth of it very reliable and colourful carabineer products. Using the following sales history, calculate th

Describe views of organizational conflict, Discuss three barriers to effect...

Discuss three barriers to effective oral communication and possible remedies. Discuss 3 views of organizational conflict. When is conflict "good?" When is conflict "bad?"

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