E3-linear programming

Question 1

1. FEASIBLE REGION AND OPTIMAL PRODUCTION PLAN

Answer 1

1. The linear programming graph shows
the current situation in terms of available
resources.
2. The feasible region is the area of the
graph which includes all of the possible
combinations that can be produced
given the raw material constraints and
the two minimum production levels.

Question 2

2. appropriateness of the optimum production plan

Answer 2

1. the optimum production plan given by the graph may not be the most appropriate solution.
   - the graph is based on maximising contribution from the constrained resources and whilst it may produce the maximum contribution available, it may not be appropriate from a market perspective.
2. it may be more appropriate to estimat the increase in sales volume that we anticipate above budget and to add maximum demand lines to the graph.