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Chapter 4

Planning with limiting factors

Outcome

By the end of this session you should be able to:

 select an appropriate technique, where there is one limiting factor/key factor, to
achieve desired organisational goals

 determine the optimal production plan where an organisation is restricted by a
single limiting factor, including within the context of 'make' or 'buy' decisions

 select an appropriate technique, where there are several limiting factors/key
factors, to achieve desired organisational goals

 formulate a linear programming problem involving two products and determine
the optimal using a graphical approach

 use simultaneous equations to determine where the two lines cross to solve a
multiple scarce resource problem

 explain shadow prices (dual prices) and discuss their implications on decision
making and performance management in multiple limited resource discuss their
specific implications on decision making and performance management

 explain the implications of the existence of slack, in multiple limited resource
situations, for decision making and performance management
 calculate slack and explain the specific implications of the existence of the slack
for decision making and performance management

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can

be found in Chapter 4 of your Study Text

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