Skip to content

ACCA Forums

PMConstraint vs binding constraint

Kkedesh3y ago
Hi, I’m struggling to understand the difference between constraints and binding constraints in relation to linear programming. From past exam papers I am seeing that only binding constraints have a shadow prices but cannot get the logic behind it. Any insights would be wonderful! Thank you!
MmrjonbainModerator3y ago#1
Basically binding constraints impact the solution of the problem. Non binding constraints do not and that is why non binding constraints have a shadow price of zero. Hope this helps.
Sign into reply to this topic.