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Could you explain to me why
1. If the aim is to minimise costs, the solution is where the total cost line touching the feasible area at a tangent is as close to the origin as possible; and
2. If the aim is to maximise profit, the solution is where the total contribution line touching the feasible area at a tangent is as far away from the origin as possibleI cannot imagine the linear relationship, or the graph relationship between them, so I cannot understand their explanation.
Please help me explaining it more specifically.The explain of BPP as follow:
“If the aim is to minimise costs, the solution is where the total cost line touching the feasible area at a tangent, is as close to the origin as possible as this will allow the company to make as little as possible given constraints. If the aim is to maximise profit, the solution is where the total contribution line touching the feasible area at a tangent, is as far away from the origin as possible as this will allow the company to make as much as possible given contraints.
You need to watch my free lectures on linear programming because I explain all of this and the drawing of the graph, and you cannot expect me to type out all of my lectures here 🙂
When we are maximising profit then we draw the total contribution line, and the further it is from the origin the greater the profit will be.
When we are minimising costs then the approach is exactly the same except that we draw the total cost line, and the nearer it is to the origin then the lower the costs will be.
Again, you should watch my free lecture on this. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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