Sir, could you please explain me how the steps of linear programming change if we use a COST MINIMIZING objective rather than a profit maximizing objective.
CIMA Forums
Linear programming - Cost minimizing problem.
Hi,
There isnt a lot of difference except for the basic concept of the objective function is to minimise costs rather than maximise contribution
The aim of cost minimisation problems is to find the optimal mix of resources which result in the lowest cost (rather than the most contribution).
It is much rarer to see a cost-minimisation problem and Im sure most of the linear programming you come across with CIMA will be profit maximisation.
Kind Regards
Cath
Thank you sir, bit worried about the late reply. Anyway appreciate your response. I have completed P1 last week sir. Passed by first attempt and I have to say that opentuition study materials helped me a lot to complete my OTQ exams since certificate level.
Thats great - yes sorry for the delay -we had a IT issue that wouldnt save my reply - Great to hear you passed! Thanks for the great feedback for Open Tuition too,
Kind Regards
Cath
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