Objective function, Managerial Accounting

Objective Function

Although the standard LP model can be either the maximization or the minimization type, it is sometimes useful to convert one form to the other.

The maximization of a function is equivalent to the minimization of the negative of the same function, and vice versa.

For example:  Max. Z   = 5X1 + 2X2 + 3X3 is mathematically equivalent to
                    Min.  (-Z) = -5X1 - 2X2 - 3X3

Equivalence means that for the same set of constraints the optimum values of X1, X2 and X3 are the same in both cases. The only difference is that of the values of the objective functions, although equal numerically, will appear with opposite signs. Example: Write the following LP model in the standard form:

Minimum:        Z = 2X1 + 3X2       Minimum:    Z = X1' - 2X1'' + 3X2

Subject to:       X1 + X2 = 10        Subject to:    X'1 - 2X''1 + 3X2 = 10
                     -2X1' + 3X2≤ -5                        2X'1 - 2X''1 - 3X2 - S2 = 5
                      7X1 - 4X2 ≤ 6                          7X'1 - 7X''1 - 4X2 + S3 = 6
                      X1 Unrestricted                         X1', X1'', X2, S2, S3 ≥ 0
                      X2 ≥ 0

Posted Date: 12/7/2012 6:22:15 AM | Location : United States







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

Write discussion on Objective function
Your posts are moderated
Related Questions
Define the modes of Hybrid Instrument? 1. What are a variety of investment risks. Describe them. 2. Define the modes of Hybrid Instruments and clarify their features.

Define Materials cost variance Material cost variance (MCV) is the difference between the standard cost of material specified and the actual cost of materials used." It is the

Consider the following quality data for three different manufacturers of automobile weather-strips: Weather-strip Bulb Dimension Specification y=20 +or- 4mm

The Baumol Model in 1952 considers cash management complication as same to inventory management problem. For itself the firm attempts to minimize the total cost that is the sum of

JIT and Management Accounting Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect

identify and explain cost classification for performance evaluation

X's Strategy X will like to divide his play between his rows in such a way that his expected winnings or losses when Y plays the first column will be equal to his expected winn

Calculate the EOQ An agent supplies 1000 units per calendar month (PCM) OF A PRODUCT TO CONSUMER. The cost per unit is £175 and the amount cost of storage space is £40. Associ

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme