Skip to content

Ask the Tutor ACCA PM

Decision making techniques - Linear programming.

TTran9y ago
Which two statements are true when using linear programming to solve production problems? A. If the aim is to minimise costs, the solution is where the total cost line touching the feasible area at a tangent is as far away from the origin as possible. B. 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. C. If the aim is to maximise profit, the solution is where the total cost line touching the feasible area at a tangent is as far away from the origin as D. If the aim is to maximise profit, the solution is where the total contribution line is touching the feasible area at a tangent is as close to the origin as possible E. 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 The answer of BPP is B and E, below are the explanation of them: "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." I cannot imagine the linear relationship, or the graph relationship between them, so I cannot understand their explanation. Please help me explaining it more specifically.
TTran9y ago#1
I am sorry but I cannot see anything in this post
John MoffatJohn MoffatTutor9y ago#2
You asked the same thing yesterday and I answered you here: https://opentuition.com/topic/decision-making-linear-programming/ You do not need to visualise the graph. A fundamental part of linear programming is understanding the way we use the contribution line, and I explain this in great detail in my free lectures.
Topic lockedNew replies are closed.