Status resources, Managerial Accounting

Assignment Help:

Status Resources

We had classified constraints as scarce and abundant, depending respectively on whether or not the optimum solution "consumes" the entire available amount of the associated resource. Our objective is to secure the information from the optimum tableau. First we must clarify one point. Speaking of resources implies that there is a maximum limit on its availability, which means that the constraint must originally be of type ≤. Thus constraints of the type ≥ cannot physically represent a resource restriction; rather, they imply that the solution must meet certain requirements, such as satisfying minimum demand or minimum specifications.

In our problem we have four constraints of the type ≤. The first two (representing raw materials usage) are "authentic" resource restrictions. The third and fourth constraints deal with demand limitations imposed by the market conditions. We can think of these constraints as limited "resources", since increasing demand limits is equivalent to expanding the company's share in the market.  Monetarily, this has the same effect as increasing availability of physical resources (such as raw materials) through allocation of additional funds.  Following the discussion above, the status of resources (abundant or scarce) in any LP model can be secured directly from the optimum tableau by observing the values of the slack variables.


Related Discussions:- Status resources

Absorption cost-variable cost-transfer pricing methods, Absorption cost ...

Absorption cost Absorption, or full cost systems, transfer the full cost of the supplying department to the receiving department. Where a profit is to be allowed to the supplyi

Selective inventory management, Selective Inventory Management The inve...

Selective Inventory Management The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/o

What are the disadvantages of incremental budgeting, Disadvantages of incre...

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

Loan syndication, Loan Syndication : There are two ways of syndication a...

Loan Syndication : There are two ways of syndication as: direct lending and through participation. - Direct Lending: regarding "direct lending" all the lenders sign the loa

Determine the need and importance of management accounting, Determine the N...

Determine the Need and importance of management accounting: 1.Increasing efficiency: management accounting increases efficiency of business operations. The targets of differe

What is management accounting, Question 1 The following items are found in...

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Transfer pricing-performance evaluation, Transfer Pricing and Performance E...

Transfer Pricing and Performance Evaluation Transfer pricing is simple in concept and yet complex in implementation. It provides a divisional output valuation where output from

.Sale Budget, I need to complete a sale Budget; however I don''t have the s...

I need to complete a sale Budget; however I don''t have the sale price, I have the actual and Budgeted sales dollar Data0Sales Budget, and The following actual information that rel

What do you understand by marging of safety, Question: (a) A retail sto...

Question: (a) A retail store wants to evaluate how many units it must sell in order to earn a profit of Rs 10000 per month if the price of the unit is Rs 300, the average varia

Assignment help, I need help making sure I did my accounting assignment cor...

I need help making sure I did my accounting assignment correctly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd