1
Q
How do you calculate the optimal limiting factor plan?
A
Identify the limiting factor
Calculate the contribution per unit for all products
Calculate the contribution per unit for the limiting factor
Rank them
Work out the optimal plan
2
Q
How do you calculate the optimal plan with multiple limiting factors?
A
Define the variables
X Y
Establish the constraints
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>
Make a formula
??x + ??y > ??
Make a contribution formula
C=??x + ??y
