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

Comparison of market based and resource-based approach, Comparison of Marke...

Comparison of Market Based and Resource-Based Approach to Operations Strategy Since Porter's assertions, there has been a recognition that traditional strategic management has

Explain what is the tax on salvage value, Mars Inc. is considering the purc...

Mars Inc. is considering the purchase of a new machine that will reduce manufacturing costs by $5,000 annually. Mars will use the MACRS accelerated method to depreciate the machine

Explain one of the disadvantages of technology, One of the disadvantages of...

One of the disadvantages of technology is that it does not allow older workers to postpone retirement. True False

How do we link strategic and operational change, 1. How do we link strategi...

1. How do we link strategic and operational change?  Answer: Hambrick and Cannella present a 5-step approach:  1. obtain broad inputs at the formulation stage  2. assess o

Customer needs - business strategy, Customer Needs - Business Strategy ...

Customer Needs - Business Strategy A key aspect of developing business strategy is the determination of customer needs and wants in the markets to be targeted. There are many

Explain why are suppliers hesitant about jit purchasing, briefly explain ve...

briefly explain vendor relations in lean systems- a. Why are they important? b. how are they different from adversarial relations of the past? c. why are suppliers hesitan

Explain the type of material handling systems, Describe the type of materia...

Describe the type of material handling systems used in warehouses?

Supply Network, In a 1-2 page paper with a graphic as an appendix, identify...

In a 1-2 page paper with a graphic as an appendix, identify a supply network and evaluate the importance of operations management in moving this product through the supply chain to

Important functions of maintenance department, Problem 1: What are the ...

Problem 1: What are the important functions of maintenance department? Day to day activities Keeping the machinery, equipment, and services in proper working condition

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