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Dear Sir,
In this example, while calculating maximum production plan, i am doing it the way you have taught in lecture but in BPP answer and my answer there comes difference. could you pls advise me. i did it in following way
material = 0.27P + 0.27S = 5400 —– 1
labour = 0.5P + 0.75S = 12000 ——- 2Eq.1×1.85 = 0.5P + 1.39S = 9990—– 3
(3-2) 0 + 0.64S = 2010
S = 3140.63 While in BBP answer it shows S=12000
Pls guide me Sir, where i have mistaken. Thanks.
Firstly, by solving those two equations, you are not finding the optimum solution – you are finding the values at Point C in BPP’s answer, whereas the optimum solution is at point D is BPP’s answers.
Secondly, BPP’s answer does not show S = 12,000 at point C. It shows P = 12,000 and S = 8,000
Finally, your equation 3 is wrong. You should be multiplying equation 1 by 0.5/0.27 = 1.85185185.
If you do this you get: 0.5P + 0.5S = 10,000
(3-2) then gives 0.25S = 2,000S = 8,000 (which is what BPP get)
Dear Sir, Thank you for clarifying my mistakes.
Sir 1 Question
If i do Eq. (3-2) then S = (-8000) isn’t it ?
No is give -S = -8000
Or if you prefer take 2-3 in which case +S = +8,000 (which is exactly the same) 🙂
Sir, i calculated Slack in same example, my answer
Demand for S = No Slack
Demand for P = Slack 9000 units
Material = Slack of 540
Labour = No SlackIs these answer true ??
I am on vacation until tomorrow evening, and so I do not have the BPP book with me at the moment and so I cannot check..
Please ask again on Friday and then I will check 🙂
Sir,
I am confused about the methods of solving Shadow Price.
We in lecture did like this :
05P + 0.75S=12000——– EQ-1
0.27 P + 0.27S=5400——-EQ-2then multiplying EQ.1 with any number and then gets the value of S or P
Again we put the value in one of above eq. and gets the value of P or S
While, in BPP they directly put the value of S (in this exa.12000) in EQ.1 and gets the value of P.
Why it is like that, Sir ?
However in example 35 they found shadaw price by the method we follow in lecture.
Thanks you in advance
No they don’t.
For the shadow price of craftsmen they changed the 12,000 hours to 12,001.
S = 12,000 is the demand constraint, and for finding the shadow price of craftsmen we assume the demand constraint is unchanged.
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