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 disadvantages of the open innovation approach, How might businesses...

How might businesses use the Internet to identify untapped customer needs through open innovation? What do you see as the major advantages and disadvantages of the open innovation

Explain about the economics of scope of lean production, Explain about the ...

Explain about the economics of scope of lean production. Economies of scope: It is possible while resources as like machinery or labour can be shared to manufacture vari

Explain sole responsibility for prioritizing, Customers have the sole respo...

Customers have the sole responsibility for prioritizing their own needs, selecting a contractor to perform their project, and terminating a project that is not working.

Explain travel time of a community, A bank is planning to serve the rural c...

A bank is planning to serve the rural communities shown in figure 10.8 with automated teller machines (ATMs). The travel time in minutes between communities in the service area is

Describe the steps of the collaboration process, 1. State the primary reaso...

1. State the primary reasons for the organizations existence from an analysis of the mission, vision, values, and goals. & Intro. 2. Analyze the reason for the type of organizat

What is cost accounting, I borrowed the book of cost accounting and brought...

I borrowed the book of cost accounting and brought the answer of the questions about three months ago. You charge me $15.94 for the answers per month. Now, I have returned the book

Compute the appropriate loan table, You just took a $20,000, eight-year loa...

You just took a $20,000, eight-year loan. Payments at the end of each year are flat (equal in every year) at an interest rate of 8 percent. Calculate the appropriate loan table, sh

Analyze on the price of heating oil, Question For the financial year 20...

Question For the financial year 2012-2013, it has been decided the equalization of the tax on heating oil with the tax on fuel, thus increasing the price of heating oil. Do you

Offer a description of the freedom of the world survey, Please provide a de...

Please provide a description of the Freedom of the World survey. What factors are taken into consideration in the survey when forming the rankings?

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