20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

limiting factor

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 18, 2015 at 1:51 pm #283610
pumulokrebby1992
Member
- Topics: 1
- Replies: 3
Limiting factor-
Linear programming….kindly assist me with the working for this question
Q1. MCQ
A company currently makes 2 products X and Y. both use material z which is limited supply and current production levels using the entire weekly supply. product X uses 5kg of Z per unit, product Y uses 5kg of Z per unit. Material Z is costing currently $3/kg and the shadow price for material Z has been calculated as $3.7/kg.
The supplier of material Z is prepared to increase the weekly supply by 10kg.
What is the extra amount that the company should prepare to pay for the extra material?
November 18, 2015 at 2:33 pm #283631
John Moffat
Keymaster
- Topics: 57
- Replies: 54699
I really do suggest that you watch our free lectures on linear programming!!
The shadow price is the most extra that will be paid (above the normal cost).
Therefore the most per kg that they are prepared to pay for Z is 3 + 3.70 = $6.70 per kg.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.