Optimum solution, Managerial Accounting

Optimum Solution

From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be totally ignored in reading the optimum solution. The variables not listed in the "basic" column necessarily have zero values. The rest have their values in the solution column.  In terms of the optimum solution of our example, we are interested primarily in the product mix of exterior and interior paint, that is, the decision variables XE and XI. From the optimum tableau we have the following summary:

Decision Variable        Optimum Value                    Decision
XE                                3 1/3                Produce 3 1/3 tons of exterior paint
X                                1 1/3                Produce 1 1/3 tons of interior paint
Z                                  12 1/3              Resulting profit is 12 2/3 thousand Shs

Posted Date: 12/7/2012 6:46:02 AM | Location : United States







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