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 what is the role and impact of hr practices, What is the role and i...

What is the role and impact of HR practices domestically and internationally when globalization forces the organization to seek expansion overseas?

Operations system, what is operations system? explain the process of operat...

what is operations system? explain the process of operations system?

Model of service quality - customer satisfaction, Model of Service Quality ...

Model of Service Quality - Customer Satisfaction Gap 1  Occurs due to management's lack of a clear understanding about how customers determine their expectations on the b

Explain what was the net gain or loss for the year, 1. A venture capitalist...

1. A venture capitalist company had invested in five new businesses during the last year. The results at the end of one year were as follows: Business A: Loss $500,000, Business B:

Explain how many days is a required production run, Johnson Plastics makes ...

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnson's expected demand for the display cases is 1,000 units, and av

Explain how cpm handle the trade-offs between time and cost, Giving example...

Giving examples, how does CPM handle the trade-offs between time and cost in the scheduling of a project.

Transportation method, Transportation  Method We  solve the transportati...

Transportation  Method We  solve the transportation  problem using the followings steps in order: a. Structuring the problem  into the  transportation  framework. b. Findi

Describe case studies with ethnographic research, 1. What benefits can be g...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

Explain disadvantages of the open innovation approach, How might businesses...

How might businesses use the Internet to identify untapped customer needs through open innovation? What do you see as the major advantages and disadvantages of the open innovation

Explain wrongfully discharged have against an employer, Pam worked at a loc...

Pam worked at a local retail store for the past two years. At first, she loved her job; however, the store made a change in management at the end of her first year of employment. T

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