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I am referring to the following post:
https://opentuition.com/topic/linear-programming-39/Could you explain the logic of this surplus?
If we have a demand 10 and in the optimum solution we are producing 12, then we will have a surplus of 2. That’s ok.
But what’s the point of having a surplus of 2? If the demand is 10, then what’s the point of producing 12. We will be only be able to sell only 10 at the end of the day.
Please clarify this.
Thanks
Your question did not say that the demand was 10!!
It said that the minimum demand was 10. So they have to produce at least 10 whatever happens. But they can sell more if they produce more – and whether they do produce more (and how many more) depends on the other contraints and how profitable the other product it.
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