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

Group layout, Can I know what is group layout

Can I know what is group layout

Explain human resource strategic partner''s specialized, Is the Human Resou...

Is the Human Resource strategic partner's specialized approach a little boring to the employees and the organization?

Describe the several components of inventory holding cost, Question: (a...

Question: (a) (i) What are the assumptions to be respected while deriving the Economic Order Quantity formula. (ii) Describe the several components of inventory holding c

How you would address project management situation, MBTI and Keirsey Temper...

MBTI and Keirsey Temperament Sorter Describe the challenges you foresee in using the MBTI instrument or Keirsey Temperament Sorter in a project management situation and how you wo

Explain optimum batch production quantity, A job shop receives an order for...

A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be suppl

Explain how important is the compensation system, How the compensation syst...

How the compensation system influences employees motivation, productivity and satisfaction. How important is the compensation system in an employee's productivity? Are there other

Lean Synhcronization, Explain how you woul eliminate waste through flexible...

Explain how you woul eliminate waste through flexible processes

Explain how do these policies and practices align, Analyze Apple, Inc.'s le...

Analyze Apple, Inc.'s legal and compliance policies and practices. How do these policies and practices align with Apple, Inc.'s legal compliance standards? If alignment is n

What potential problems in flexible retirement programs, What potential pro...

What potential problems and benefits are likely with early or flexible retirement programs?

Define the upper and lower control limits, The overall average on a process...

The overall average on a process you are attempting to monitor is 50 units. the process standard deviation is 1.72. Determine the upper and lower control limits for a mean chart, i

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