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 vroom model leadership, Compare and contrast, the three following l...

Compare and contrast, the three following leadership models: Vroom Model leadership, Fiedler`s Contingency Model and Hersey & Blanchard Situational Theory?

Explain criminal prosecutions hurt innocent shareholders, Respondeat superi...

Respondeat superior is the theoretical basis for holding companies criminally liable for actions of their employees. Companies oftentimes have little defense against prosecution. C

Explain what''s the difference between these abbreviations, In e-mails writ...

In e-mails writers sometimes use abbreviations such as FYI(for your information), ASAP(as soon as possible). Others writers sometimes use LOL (laughing out loud), 4 u(for you), gr9

Basic queuing theory, 1. Consider a hot dog cart on a busy New York street....

1. Consider a hot dog cart on a busy New York street. Customers arrive about every 3 minutes. a. Discuss: without any additional information, what is a plausible queuing model to u

Find the loss for a quality characteristic, A quality characteristic has a ...

A quality characteristic has a manufacturing specification (in cm) of 0.200 ± 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm

What factors are likely cause faults in valuing google stock, The managemen...

The management and Directors of Google have stated that there is no plan for Google to ever pay dividends. Yet, the stock trades at a very high price in dollar terms (around $490 p

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 the impact of the solicitation process, Describe the impact of the ...

Describe the impact of the solicitation process and how it determines the preparation of your bid.

Explain shareholder activism, McDonald's Corporation, the world's largest f...

McDonald's Corporation, the world's largest fast-food restaurant chain, with 2010 revenues of $24 billion,has recently been on a "roll." Its shareholder value has more than doubled

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