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 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

Product layout - disconnected flow, Product Layout - Disconnected Flow ...

Product Layout - Disconnected Flow any products or components (eg toys, shoes, many electronic components) are required in volumes which do not justify continuous operation,

Describe the functioning of a erp purchase system, Describe JIT and Kanban....

Describe JIT and Kanban. Mention the benefits of JIT. JIT - concept, objective, achieving the aims of JIT (Elimination of Waste, Total Quality Management (TQM),Total Employee

Explain the effective integration of information, Q. Explain the effective ...

Q. Explain the effective integration of information in enterprise-wide systems. Enterprise-wide systems enable the consequence on various enterprise support resources or busine

Management as a process, Management as a process Much has been written...

Management as a process Much has been written of management as a process of 'getting things done through people', but the seminal work was that of the French engineer and indu

Draw a network for the project, Question: (a) "CPM and PERT are two tec...

Question: (a) "CPM and PERT are two techniques widely used in project management." Under what conditions is each one of them used ? Illustrate your answer with examples. (b

Explain why has walmart tended to improve performance, Why has Walmart tend...

Why has Walmart tended to improve performance while other retail outlets have been suffering financially?

Describe the objectives of trade unions, Describe the objectives of trade u...

Describe the objectives of trade unions. The Objectives of trade unions are: (i) To take labour out of the competitive procedure because when a number of workers freely comp

Explain matrix organization isn''t working, Your company's matrix organizat...

Your company's matrix organization isn't working; decisions are taking too long and it seems to you that instead of best solutions you're getting compromises. As CEO what would you

Explain the annual interest payment, A bond has a coupon rate of 15%, a yie...

A bond has a coupon rate of 15%, a yield to maturity of 10.55%, and a market price of $850. Therefore, the annual interest payment is: a.) $850 b.) $150 c.) $105.50. d.) $120.0

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