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I am a bit confused in this question 🙁
Why when I solve equations and derive optimal production plan, my numbers do not give me maximal contribution that can be earned?
Is that meen that solving equation I find optimal production plan but I am not shure that the contribution is maximaised becouse I can produce first units with higher contribution then others although resourses are not fully utilized?I am not sure which question you mean, because I have the newer edition of the revision kit. Are you asking about a question called Higgins?
The answer in the book is correct and I am not quite sure what you are meaning. The optimal solution is always found by moving the contribution line as far away from the origin as possible without leaving the feasible region – it is at the intersection of the two constraints at that corner. This will always be the solution that gives the maximum contribution.
I can only really suggest that you watch the free lecture on linear programming where the approach and the logic is explained in full.
Hello John,
The Question is exactly the same Higgins.I solve the equations:
1.) 0.270P+0.270S < 5400
2.) 0.5P+0.75S < 12000
Multiply 2nd one by 0.54 I derive equation 3.):
3.) 0.275P+0.275S = 6480
Then I get the result S=8000 P=12000But these results are not profit maximising results.
In this way I am trying to get the right answer before making graph. But as I sow these method which I use is wrong in terms of contribution maximising.
In this way I found optimal use of resource but not contribution maximising solution.
But you have not found the optimal use of resource!
The optimal use of resources is that that gives the optimal profit. It would be pointless to buy resources just because they were available – you will only buy whatever you need in order to generate maximum contribution.
You cannot solve a linear programming question without drawing the graph. Partly because you risk getting the wrong answer (as you have done) but also because the examiner specifically asks for the graph and there will be marks for drawing it.
Again, I do suggest that you watch the free lecture on linear programming where I make exactly these same points.
Thank you John,
Sorry for my misunderstanding. I will watch lectures again.Best regards,
Vladimir
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