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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › linear programming
Hi John!
Could you explain the logic of surplus?
-If for example have a demand of 10 and in the optimum solution we will be able to produce 12, then there is a surplus a 2
-How can that be possible? In the graph itself, it would outside the feasible area?
Please clear this confusion.
Thanks.
There would only be a surplus if the minimum demand was 10 (not that the demand was fixed at only 10). In that case you could sell 12 and it would be in the feasible region and there would be a surplus of 2.
