Modified distribution methods, Operation Management

Assignment Help:

As mentioned previously the MODI method is an efficient method of testing the optimality of a transportation solution. It may be recalled that in the application of the stepping stone method each of the empty cells is evaluated for the opportunity cost by drawing a closed loop. In situation where a large number of sources and destination are involved this would be a very time consuming and intricate exercise. The MODI method avoids this kind of extensive scanning and reduces the number of steps required in the evaluation of the empty cells. This methods gives a straightforward computational scheme whereby we can determine the opportunity cost of each of the empty cells.

Step i) : Add to the transportation table a column on the EHS titled u and a row in the bottom of it labelled vj.


Related Discussions:- Modified distribution methods

Explain annual demand for an airport metal detector, ABC distributors has a...

ABC distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to ABC is $400. Carrying cost is estimated to be 20% of the unit

Define mathematics tends to lull the unsuspecting, C.W. Churchman once said...

C.W. Churchman once said that "mathematics tends to lull the unsuspecting into believing that he who thinks elaborately thinks well." Do you think that the best QA models are the o

Linear trend equation, A cosmetics manufacturers marketing department has d...

A cosmetics manufacturers marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand and Foot Cream. We are given F sub

Descibe the stages of contract formation, Maria, who lives in Seattle, sent...

Maria, who lives in Seattle, sent Koji a letter via first class mail, stating, "Koji, I think your 2003 Ford SUV is worth $20,000. I will give you $20,000 cash for it." Koji receiv

Explain what effective leadership means, Describe what effective leadership...

Describe what effective leadership means to you. Who determines a leader's effectiveness? Provide details and examples to support your thoughts.

Explain how training and education of work forces are differ, Explain how t...

Explain how the training and education of work force differ from that of the middle level managers. The training and education of work force differ from that of the middle le

supply chain, What is the primary objective of supply chain managemen

What is the primary objective of supply chain management

Describe difference between two population means, If a manager wishes to de...

If a manager wishes to develop a confidence interval estimate for estimating the difference between two population means, an increase in the size of the samples used will result in

Explain reducing the project duration increases the risk, Take a position o...

Take a position on the following statement from the textbook author: "Reducing the project duration increases the risk of being late." Support your position

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