Binding constraint
A binding constraint is satisfied exactly at the solution, leaving no slack or surplus on that restriction. It can identify a resource fully used or a demand limit reached. A binding constraint need not always have a positive shadow price, particularly in degenerate or redundant arrangements. Interpret it together with the objective, other constraints and sensitivity range rather than assuming every fully used resource deserves unlimited additional spending.
Worked example
A solution uses all 500 available machine hours, so the machine-hour constraint is binding. A material constraint with 100 kg unused is non-binding on that solution.
Common mistake
Binding does not mean outside management’s control or automatically the same as the economically valuable bottleneck in every model.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |