Objective function, Managerial Accounting

Assignment Help:

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


Related Discussions:- Objective function

What is solvency ratios, Explain Solvency ratios The term solvency refe...

Explain Solvency ratios The term solvency refers of the ability of a concern to meet its long term obligations. The long term indebtedness of a firm include debenture holders,

How much was Topaz’s operating income (income before taxes), How much was T...

How much was Topaz’s operating income (income before taxes) last year?

Disadvantages of simulation, Disadvantages of Simulation 1) Although al...

Disadvantages of Simulation 1) Although all models are simplification of reality, they may still be complex and require a substantial amount of managerial and technical time.

Decision - making, Decision Making Some managers appear to have an...

Decision Making Some managers appear to have an intuitive sense of good decision making. The reality is that good decision making is hardly ever done by intuition. Consist

What is scientific standards and variance analysis, What is  Scientific st...

What is  Scientific standards and Variance analysis The important steps of standard costing as described above may be summarized as follows; 1) Scientific standards: stand

Multiple regression, MULTIPLE REGRESSION The least square regression eq...

MULTIPLE REGRESSION The least square regression equation discussed above was based on the assumption that total cost was determined by only one activity based variable. However

Dominance, DOMINANCE Dominance strategy is useful for reducing the size...

DOMINANCE Dominance strategy is useful for reducing the size of the payoff table. Rules of Dominance: 1) If all the elements in a column are greater than or equal to the

Comparing between real and planned outcomes , Comparing real and planned ou...

Comparing real and planned outcomes and responding to Divergences from Plan The final phases in the process outlined in figure shown below of comparing real and planned outcome

How can improvement in product design - cost reduction, Improvement in prod...

Improvement in product design may result in cost reduction illustrated below: 1) Material cost : change in design of the product may result in saving in material cost. Economi

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