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Limiting factor example from chapter 6

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Limiting factor example from chapter 6

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
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    Posts
  • October 22, 2015 at 1:47 pm #278402
    vinogradovaa
    Participant
    • Topics: 21
    • Replies: 9
    • ☆

    In the example the constraint is for executive chairs and in solution they are on x axis, whereas logically they should be on y axis. the solution if to plot this constraint on y axis is different. It gives a lower contribution. consequently also slack exists only for labour.

    What is the correct decision to plot the executive chairs on x or y axis and how to proceed in future questions?

    Thanks.

    October 22, 2015 at 4:36 pm #278439
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    It does not matter in the slightest which axis you use for each product (I really do not understand why you say that logically executive chairs should be on the y axis – there is no logic involved 🙂 ).

    The final answer will be the same whichever way round you have your axes – it is completely irrelevant.

    October 23, 2015 at 11:06 am #278543
    vinogradovaa
    Participant
    • Topics: 21
    • Replies: 9
    • ☆

    I am sorry but usually we proceed from left to right, let standard chairs be x and executive be y. If it is from left to right, then the decision will be different. There is a difference in contribution of 15.

    October 23, 2015 at 1:04 pm #278558
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    I am sorry, but you are wrong!

    You don’t need to use the symbols x and y – it is more sensible to use symbols that more obviously represent the the products (I use S for standard and E for executive).

    It does not matter which axis you use for which product – the final solution will be the same. (This is not a maths exam!)

    In relation to your first question – there is no slack for either labour or materials in this example (how you show your axes makes no difference whatsoever to the solution. I cannot make a difference! The graph obviously is ‘turned round’, but that does not affect the solution at all).

    I do suggest that you watch the free lecture going through this example again!!

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