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I understand that in ACCA F5, the questions only ask about two variables (product x and y) when considering scenarios about planning with limited resources.
But I am really curious for scenarios that the variables are more than two. How to calculate and plan with limited resources under such questions. Because let’s face it, firms rarely only make 2 products. There are dozens, scores, or even hundreds of products to manufacture.
Will such knowledge be covered in P5? If not, can anybody recommend books or articles or papers discussing about this scenarios?
Thank you!If there are more than 2 variables, then obviously the graphical approach does not work and you need to use the alternative approach which is the Simplex method.
This is not examinable in ACCA (in the P papers you can be asked to formulate the problem – i.e. list all the constraints in terms of equations – but you cannot be asked to solve. In fact in the P papers they do not even except you to solve when there are only 2 variables.)
If you are interested then if you do a Google search for the simplex method you will find information. Just remember that it is not examinable in ACCA (and a Paper F5 they specifically ask for the graphical method and so using the simplex approach would not get the marks).
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Hi Mr. Moffat,
Thank you! I searched many key words, including linear programming today, and surprise. There is an entry in wikipedia.
I am now reading an article, discussing scenarios for variables more than two. Apparently the author tells us that the method for a multi-variables scenario would require the assistance of spreadsheets (Solver tools), no wonder ACCA does not require this knowledge.
I will do a search for simplex to find out what it is.
Thank you for reminding me of ACCA’s graphical method restriction!
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