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 why should be performed before signing a contract, What due diligen...

What due diligence should be performed before signing a contract?

Line balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Location analysis, explain the series of steps involved and various factor...

explain the series of steps involved and various factor effecting location decion?

Describe what is the chocolate raw material safety stock, Christian runs a ...

Christian runs a small chocolate shop. He manages his chocolate raw material using a periodic review system. Daily demand has a mean of 100 pounds and standard deviation of 10 poun

Explain disadvantages of each decision that elaine has made, Discuss the ad...

Discuss the advantages and disadvantages of each decision that Elaine has made

Brainstorming - improving productivity, Brainstorming - Improving Productiv...

Brainstorming - Improving Productivity Brainstorming is a well-known ideas-generating technique aimed at producing new ideas before evaluation, which tends to shut down many

Define the elements of method study and work measurement, Define the elemen...

Define the elements of method study and work measurement. Method study and Work Measurement are elements of Work Study.

Explain major reasons why companies adopt total quality, Discuss the three ...

Discuss the three major reasons why companies adopt total quality. Also, discuss the initial key steps are involved in the adoption process.

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