## 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.

#### Explain why do reporting systems increase the risk, Why do reporting system...

Why do reporting systems increase the risk of semantic security problems?

#### Explain studying a sample from the population, What are the advantages of s...

What are the advantages of studying a sample from the population instead of the studying the entire population though a census?

#### Hard, Ask quesThe Delicious Apple Company has orchards in Red City, Golden,...

Ask quesThe Delicious Apple Company has orchards in Red City, Golden, and Macville Estimated amounts of apples to be available from the three orchards are the following: Red City

Explain advantages of budgets. Advantages of Budgets: (i) Actions plans and policy taken are all reflected into the budgetary control system. Now here is a formal recognit

#### Decribe an examination-taking work plan, 1 Page maximum for the whole quest...

1 Page maximum for the whole question] : College students are "invincible". They study on the floor, spread their materials on the floor and lean over to access them, slouch in a c

#### Explain what is cube per order index policy, What is Cube per order index p...

What is Cube per order index policy, and state any real life application to this warehouse policy.

#### What do i receive the connect plus, Do I receive the connect plus with this...

Do I receive the connect plus with this book?

#### Patient management, i want to no how they management patient were to start...

i want to no how they management patient were to start up to the end

#### Explain replacement are covered under the adea, Harvey Jameson was recently...

Harvey Jameson was recently terminated as comptroller at the age of 66 from Better Beef, Inc. His replacement is Tammy Parker, age 45. Because both he and his replacement are cover

#### Explain what advice might herzberg give bridget, Bridget Jones has been the...

Bridget Jones has been the manager of the research office at her company for over a year. She is beginning to wonder if she will ever be comfortable in this role. Her employees see