OPTIMALITY TEST

USING
STEPPING STONE METHOD
The next step is determining whether the present allocation at any stage of the
solution process is ideal.

The Stepping-Stone method originates its name from the analogy of crossing a
pond using stepping-stones. The occupied cells are analogous to the
stepping-stones, which are used in making certain movements in this method.

The Stepping-Stone Method is used to check the optimality of the initial

feasible solution and a process for finding the potential of any non-basic
variables (empty cells) in terms of the objective function.
Allocation Table using VAM
Iteration I of optimality test

1. Create closed loop for unoccupied cells

S1D2 closed loop
S1D2 closed loop
S1D2 closed loop
S1D2 closed loop
S1D2 closed loop
S1D3 closed loop
S1D3 closed loop
S2D1 closed loop
S2D2 closed loop
S2D2 closed loop
S3D1 closed loop
S3D1 closed loop
S3D3 closed loop
S3D3 closed loop
Iteration I of optimality test

1. Create closed loop for unoccupied cells

Iteration I of optimality test

2. Select the unoccupied cell having the highest negative net

cost change i.e. cell S2D2 and draw a closed path from S2D2
Iteration I of optimality test

2. Closed path is S2D2 – S2D4 – S3D4 – S3D2

Closed path and plus/minus allocation for current unoccupied cell
S2d2
Iteration I of optimality test

3. Minimum allocated value among all negative position on closed path = 2

Subtract 2 from all (-) and add it to all (+)

4. Repeat steps 1 to 3 until an optimal solution is obtained.

Iteration II of optimality test

1. Create closed loop for unoccupied cells

S1D2 closed loop
S1D3 closed loop
S1D3 closed loop
S2D4 closed loop
S3D1 closed loop
S3D3 closed loop
Iteration II of optimality test

1. Create closed loop for unoccupied cells

Since all net cost change ≥ 0, then final optimal solution is obtained.
The minimum total transportation cost

= 19×5 + 10×2 + 30×2 + 40×7 + 8×6 + 20×12 = 743