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.
Ask the Tutor ACCA PM
Decision making techniques - Linear programming.
I am sorry but I cannot see anything in this post
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.
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