Definition: The Queuing Theory, also called as a Waiting Line Theory was proposed by A.K. Erlang. According to him, the queuing theory applies to those situations where a customer comes to a service station to avail the services and wait for some time (occasionally) before availing it and then leave the system after getting the service. The situations where the arrived and … [Read more...] about Queuing Theory

# Business

## Modified Distribution Method

Definition: The Modified Distribution Method or MODI is an efficient method of checking the optimality of the initial feasible solution. The concept of MODI can be further comprehended through an illustration given below: Initial basic feasible solution is given below: Now, calculate the values of ui and vj by using the equation: ui+vj = Cij Substituting the value … [Read more...] about Modified Distribution Method

## Stepping Stone Method

Definition: The Stepping Stone Method is used to check the optimality of the initial feasible solution determined by using any of the method Viz. North-West Corner, Least Cost Method or Vogel’s Approximation Method. Thus, the stepping stone method is a procedure for finding the potential of any non-basic variables (empty cells) in terms of the objective function. Through … [Read more...] about Stepping Stone Method

## Vogel’s Approximation Method

Definition: The Vogel's Approximation Method or VAM is an iterative procedure calculated to find out the initial feasible solution of the transportation problem. Like Least cost Method, here also the shipping cost is taken into consideration, but in a relative sense. The following is the flow chart showing the steps involved in solving the transportation problem using the … [Read more...] about Vogel’s Approximation Method

## Least Cost Method

Definition: The Least Cost Method is another method used to obtain the initial feasible solution for the transportation problem. Here, the allocation begins with the cell which has the minimum cost. The lower cost cells are chosen over the higher-cost cell with the objective to have the least cost of transportation. The Least Cost Method is considered to produce more optimal … [Read more...] about Least Cost Method

## North-West Corner Rule

Definition: The North-West Corner Rule is a method adopted to compute the initial feasible solution of the transportation problem. The name North-west corner is given to this method because the basic variables are selected from the extreme left corner. The concept of North-West Corner can be well understood through a transportation problem given below: In the table, … [Read more...] about North-West Corner Rule

## Transportation Method of Linear programming

Definition: The Transportation Method of linear programming is applied to the problems related to the study of the efficient transportation routes i.e. how efficiently the product from different sources of production is transported to the different destinations, such as the total transportation cost is minimum. Here origin means the place where the product is originated or … [Read more...] about Transportation Method of Linear programming

## Duality in Linear Programming

Definition: The Duality in Linear Programming states that every linear programming problem has another linear programming problem related to it and thus can be derived from it. The original linear programming problem is called “Primal,” while the derived linear problem is called “Dual.” Before solving for the duality, the original linear programming problem is to be … [Read more...] about Duality in Linear Programming

## Simplex Method

Definition: The Simplex Method or Simplex Algorithm is used for calculating the optimal solution to the linear programming problem. In other words, the simplex algorithm is an iterative procedure carried systematically to determine the optimal solution from the set of feasible solutions. Firstly, to apply the simplex method, appropriate variables are introduced in the linear … [Read more...] about Simplex Method

## Assumptions of Linear Programming

Definition: The Linear Programming problem is formulated to determine the optimum solution by selecting the best alternative from the set of feasible alternatives available to the decision maker. Assumptions of Linear programming There are several assumptions on which the linear programming works, these are: Proportionality: The basic assumption underlying the … [Read more...] about Assumptions of Linear Programming