Constraints, Managerial Accounting

Constraints

1) A constraint of the type ≤ (≥) can be converted to an equation by adding a slack variable to (subtracting a surplus variable form) the left side of the constraint.

For illustration, in the constraint: XI + 2X2 ≤ 6 we add a slack SI ≥ 0 to the left side to obtain the equation: XI + 2X2 + SI = 6,     SI ≥ 0.

If the constraint represents the limit on the usage of a resource, SI will represent the slack or unused amount of the resource.

After that consider the constraint: 3XI + 2X2 - 3X3 ≥ 5, we subtract a surplus variable S2 ≥ 0 from the left side to obtain the equation.
3XI + 2X2 - 3X3 - S2 = 5, S2 ≥ 0

2) The right side of an equation can always be made non-negative by multiplying both sides by -1.

For illustration, 2XI + 3X2 - 7X3 = -5 is mathematically equivalent to -2XI - 3X2 + 7X3 = +5.

3) The direction of an equation is reversed when both sides are multiplied by -1. For illustration, whereas 2 < 4, -2 > -4. Thus the inequality 2XI - X2 ≤-5 can be replaced by -2XI + X2 ≥ 5.

Posted Date: 12/7/2012 6:15:01 AM | Location : United States







Related Discussions:- Constraints, Assignment Help, Ask Question on Constraints, Get Answer, Expert's Help, Constraints Discussions

Write discussion on Constraints
Your posts are moderated
Related Questions
Under this method, approximation is made of payments and cash receipts in the ensuring period. The dissimilarity of these payments and receipts indicates deficiency or surplus of c


Price sensitivity Nagle has identified nine factors that contribute to price sensitivity and has also presents various methods or techniques to measure it. The factors that con

advantage and disadvantage of incremental budget


Under this method, approximated profit is calculated depends on transactions of the ensuing period. Afterward, decrease or increase in working capital is determined adjusting the e

Graphic Analysis Whenever you have two data points, you should generally suppose a linear relationship. When you acquire more data, you can study the data to determine when there

Intra company transfer pricing A company engaged in production may have several segments division or departments doing production jobs or manufacturing party or fully finished

What the traffic can bear pricing Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms.

what areas can linear programming be applied in managerial accounting?