Comments

  1. avatar says

    Dear John,
    The example you’ve shown here is a 3rd example, which I encounter since I study F5, where the highest profit is earned at the intersection of labour hours and machine hours lines. Is this a rule? If yes, why don’t we go straight to that intersection?
    Why did you say that that the any of the corners could be most profitable?

    • Profile photo of John Moffat says

      No it isn’t a rule. The highest contribution will be earned at whichever of the corners is the furthest away from the origin when moving out the iso-contribution line.

      If you watch the video again you will see that if the line were a different angle, then when it is moved out then a different corner could be the furthest away.

      If you are not sure what I mean, just suppose the question was exactly the same except that the contribution per unit for S was $10, and for E was $1. The constraints are all the same and so the graph is the same.
      However, point A would then give the highest contribution ($360). Point B would only give a contribution of $305.

  2. avatar says

    Hiii sir, your lectures juz awesome :D

    I have a question… Will be my answer considered wrong if thers a diffrnce in my optimal solution,whethr if i use “inspection” or “drawing ISO contribution line”?

    • Profile photo of John Moffat says

      It depends what you mean by ‘inspection’.
      The only alternative to drawing the iso-contribution line is to calculate the total contribution at ever corner of the feasible area.
      (But still read the question carefully – obviously if it specifically asks for you to draw the iso-contribution line, then there is no choice :-) )

  3. avatar says

    Hello sir . Very nice lecture :) .. Sir i have a question .. That why we made third equation ? And what is its link with point B ? And sir if its all about calculating equations then why we plot graph .. Why we dont do all this in the begining ? Thankyou sir :)

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