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

Process Model - Serivces, Apply a proces smodel to a services industry proc...

Apply a proces smodel to a services industry process that experiences problems with either internal or external customers. Discuss all elements

Describe factors affecting morale, Describe factors affecting morale. F...

Describe factors affecting morale. Factors that tend to lower or improve the worker morale are: 1. Job Factors - Nature of job, Fatigue and boredom related with the job,

Production control, Production Control Meaning and Definition ...

Production Control Meaning and Definition Production control involves implementation of production plans or schedules by coordinating different activities. It seeks to

Describe components of work execution, Problem 1: Describe components o...

Problem 1: Describe components of work execution. Description of work execution and components Problem 2: What is understand by MTBF? How this measurement will help

Why it is important for marketers know consumer behaviour, Why it is import...

Why it is important for marketers to fully understand today's consumer behaviour? Explain the factors that influence consumer's buying behaviour.

How employer pay for employee benefits, 1. Why would the government not tax...

1. Why would the government not tax us for the Employee Benefits we receive? 2. As a percent of payroll, how much does your employer pay for Employee Benefits? 3. Explain the

Define measuring the input of the employee, Define measuring the input of t...

Define measuring the input of the employee. Measuring the input of the employee is not a purpose of Performance appraisal in modern management.

Explain the simple rate of return on the machine, The Jackson Company has i...

The Jackson Company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is b

Explain main causes of hr failure in multinational ventures, • Determine th...

• Determine the main reasons why a greater involvement in employees' personal lives, as opposed to non-involvement, is inevitable in many international HRM activities, especially i

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