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PMSales Price as a constraint in linear programming

Mmansoor11y ago
"The sales price of units produced/sold may be a constraint in a linear programming problems" true or false? i said false, bpp says true. please explain
John MoffatJohn MoffatTutor11y ago#1
It is true :-) Although it would never occur in a 'numbers' question in the exam, there could be a situation in practice where the sales price could be changed. Then there could be a constraint that for some reason it could never go above a certain amount (or could never go below a certain amount - certainly you would not normally want it to go below cost!) Again don't worry about it for a calculation question - that couldn't be asked :-)
Mmansoor11y ago#2
ok..my bad. I had answered True, but the text says it is False the answer explain it as:"sales price (to maximize revenue) or sales price minus variable cost (to maximize contribution) affect the Objective function but not the constraints" so it seems its more like question on the equations of the linear programming - understanding of the difference between the objective function and the constraint functions.
John MoffatJohn MoffatTutor11y ago#3
Well although what they have written about the objective function is correct, it is a poor question. However unlikely (and impossible in the exam) there could be a situation in real life where the sales price did end up being a constraint :-)
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