Page 111 - PM Integrated Workbook 2018-19

Planning with limiting factors

Look at the slope of the contribution line and, using a ruler, identify which
combination of values of x and y within the feasible area for the constraints is
furthest away from the origin of the graph. This is the combination of values for
x and y where an iso-contribution line can be drawn as far to the right as
possible that just touches one corner of the feasible area. This is the
combination of values of x and y that provides the solution to the linear
programming problem.

Optimum corner is corner c, the intersection of

8x + 10y = 11,000 and y = 600

At this corner, x = 625 and y = 600

The optimum production plan is to produce 625 units of Products X and 600
units of Product Y; the contribution at this point is maximised C = (625 × $4) +
(600 × $8) = $7,300.

Illustrations and further practice

Now try TYU 2 ‘Hebrus’.

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