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

Managerial accounting, Gafat Engineering Ethio plc manufactures two types o...

Gafat Engineering Ethio plc manufactures two types of TV sets LCD and CRT both having only one model. The LCD and CRT television sets sell for $9000 and $5000, respectively. the co

Explain performance budgeting according to seal and summers, Explain perfor...

Explain performance budgeting according to seal and summers According to seal and summers performance budgeting comprises three elements:  a) The result (final outcome)

Labor standard, Describe the impact of different types of standards on moti...

Describe the impact of different types of standards on motivations and specifically,the likely effect on motivation of adopting the labor standard recommended?

Ratio Analysis., X ltd. has a current ratio of 4.5:1 and acid test ratio of...

X ltd. has a current ratio of 4.5:1 and acid test ratio of 3:1. If its inventory is Rs. 24000, find out its current liabilities.

FIFO, I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

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

Cvp, THE BREAK EVEN POINT

THE BREAK EVEN POINT

What are the classification and computation of variances, Classification an...

Classification and computation of variances The computation and analysis of variances is the main aim of standard costing. The variance is the difference among the standard pe

Medical office accounting final project, John Doe, MD A Business Simulation...

John Doe, MD A Business Simulation This simulation covers the transactions completed by John Doe, MD, a medical service business, which began on July 1 of the current year. Dr. D

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