- This topic has 3 replies, 2 voices, and was last updated 12 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Jun’08 Q2(C) Linear programming(shadow price)
Can you explain why they treat the material(ash) as a non-critical scarce resource?
If you look at the linear programming graph in the answer, you will see that the optimal solution is at point D (explained on the previous page of the answer), and that point D lies on the craftsmen line and the max demand for S line. This means that it is using all the craftsmen time and that it is producing for max demand.
However the point D lies below the ash line. That means that we are not using all the ash that is available and that therefore ash is not critical.
Ooo…ic TQ very much!
You are welcome.