Lecture 8

Question 1

When is LP used?

Answer 1

Linear programming is used to solve problems where there is more than one limited resource

Question 2

What are the assumtions of LC.

Answer 2

You can:
Add
Divide
No discounts through bulk buy, labour hours
FC are constant so profit maximisation=Contribution maximisation
Estimates of sales are certain
Units are divisible.

Question 3

Constraints of Y

Answer 3

We cannot do everything that we want to because resources are scarce. E.g. if our labour and machine time are restricted, our output will be limited because we cannot obtain enough labour and machine time