How is Modi method calculated?
The work of the loop is over and the new solution looks as shown below. Check the total number of allocated cells is equal to (m + n – 1). Again find u values and v values using the formula ui + vj = Cij where Cij is the cost value only for allocated cell. Assign u1 = 0 then we get v2 = 1.
What do you understand by Modi method?
Definition: The Modified Distribution Method or MODI is an efficient method of checking the optimality of the initial feasible solution. Choose the largest positive opportunity cost, which is 7 and draw a closed path, as shown in the matrix below.
What is basic condition for applying Modi method?
Modified Distribution Method ( MODI METHOD ) When a basic initial feasible solution is obtained, then we have to check for it’s optimality. An optimal solution is one where there is no other set of roots that will further reduce the total cost. If dij > 0 For i and j then solution is optimal. 2.
How can Modi method be used to find the optimal solution?
Step-3: For all unoccupied cells, calculate dij=cij-(ui+vj), . a. If dij>0, then current basic feasible solution is optimal and stop this procedure.
Why we use Modi method?
MODI METHOD The MODI (modified distribution) method allows us to compute improvement indices quickly for each unused square without drawing all of the closed paths. Because of this, it can often provide considerable time savings over other methods for solving transportation problems.
What is another name of least cost method?
Bill says: Well, Jocelyn, the minimum cost method, sometimes called the minimum cell cost method or least cost method is used when the priority is to reduce costs for distribution of materials.
Why VAM method is best?
VAM is a better method than the method of Least Cost and North West Corner in searching for feasible baseline solutions early. Allocate as many variables as possible with the smallest unit cost in the selected row or column. Adjust the supply and demand, and remove the rows or columns that have been fulfilled.
Who introduced least cost method?
F.L. Hitchcock
What is column minima method?
In the column minima method, we begin with the first column and allocate gradually moving towards the lowest cost cell of the column. This system is continued until the first destination centre is satisfied or the capacity of the second is exhausted, or both happens.
What are the advantages of least cost method?
Advantages This method provides accurate solution as transportation cost is consider while making allocation. It is very simple & easy to calculate optimum solution under this method.
What is Weber’s least cost theory?
Theory was created to determine the location of manufacturing plants. The location could be different based on if the final product weighed more or less than the raw materials. According to the theory, plants will be located to maximize profits and minimize costs.
What is Weber’s model?
Alfred Weber formulated a theory of industrial location in which an industry is located where the transportation costs of raw materials and final product is a minimum. In one the weight of the final product is less than the weight of the raw material going into making the product.
What are ubiquitous raw materials?
The ubiquitous raw materials are found everywhere. This raw material is freely bestowed on earth, e.g., water, air, soil etc. The localized raw materials are confined only in some selected places on earth, e.g. iron ore, coal, bauxite etc.
What is a ubiquitous industry?
What Does Ubiquitous Mean? In business, something that is ubiquitous is widely adopted and can be found nearly everywhere. Many types of technology and best practices are ubiquitous in business, meaning that all companies use them and they are not a source of competitive advantage.
What is weight losing raw material?
Weight loosing raw materials are materials which weigh less after getting manufactured than what should have been there weight as a raw material. For example, copper taken as a raw material may weigh around 500 grams but after getting manufactured as a tool it weighs about 300 grams.
What are Localised raw materials?
Nearness to Raw Materials: Proximity to raw materials is an essential condition of localisation, if the raw material is bulky. A cement factory must be near the limestone rock; the iron and steel industry must be located where iron-ore fields, coal-mines and abundant water are to be found in close proximity.
What are Localised materials?
Localized Materials Defined. Localization has been defined as “freedom for schools or local education authorities to adapt this curriculum to local conditions,” and relating the content curriculum and the processes of teaching and learning to the local environment”.
What are the 7 location factors for industry?
Following are the important geographical factors influencing the location of industries.
- Raw Materials: ADVERTISEMENTS:
- Power: Regular supply of power is a pre-requisite for the localisation of industries.
- Labour:
- Transport:
- Market:
- Water:
- Site:
- Climate: