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Dear Sir,
If we were not on the line for materials and labour how could we calculate the value of them in order to deduct it from the maximum and find the slack?
Thank you in advance. Your help is precious.You calculate the optimal quantity of each of the two products in the normal way.
If you put these quantities into the equation for materials then it gives you the total materials being used.
If the optimal solution is not on the materials line, then the quantity used will be less than the total quantity available and the difference is the spare capacity.
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