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linear programming model has been formulated for two products, A and B, manufactured by J Co.
Which TWO of the following statements about linear programming are true?J Co can use linear programming if it starts to manufacture another product, C.
J Co would not need to use linear programming if there was not a demand constraint.
J Co should ignore fixed costs when making decisions about how to utilise production capacity in the short run, using linear programming.
Linear programming models can be used when there is an experience curve, once the steady state has been reached.
Answer – c and D
Can you explain me D as I am unclear and could not understand what is meant by experienced curve.
Thank you.It is an odd term for them to use, but it means that instead of being linear the constraint becomes a curve. So for instance, the cost of labour is usually linear (a fixed cost per unit so more units, more total cost). However if there is learning the the labour cost per unit will change and the graph of the total cost will be a curve. We can only use linear programming when the constraints and objective are linear – not when they are curves 🙂
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