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

Define materials cost variance, Define Materials cost variance Material...

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

Breakeven analysis, I am part of a marketing group, and we are working on a...

I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do

Explain the cost accounting, Explain the Cost accounting:         Meani...

Explain the Cost accounting:         Meaning and definition: Cost accounting is the process of accounting for cost which begins with the incurrence of cost and ends with th

Determine the price determination process, Determine the Price determinatio...

Determine the Price determination process 1) Estimating the demand for the product: the first step in determining the price of a new product is to estimation the anticipated

Determine the profitability ratios, Profitability ratios The primary ob...

Profitability ratios The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business re

C-v-p analysis – multiple products, C-V-P ANALYSIS – MULTIPLE PRODUCTS ...

C-V-P ANALYSIS – MULTIPLE PRODUCTS The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The o

Security analysis and portfolio management, Security Analysis and Portfolio...

Security Analysis and Portfolio Management Define Capital Market Line and how is it dissimilar from Security Market Line. Describe with illustrations?

Advantages-limitations-dynamic programming, Advantages and Limitations of D...

Advantages and Limitations of Dynamic Programming Advantages: (1) In certain types of problems such as inventory control management, Chemical Engineering design, dynamic

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