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ACCA Applied Skills · Performance Management · Limiting factors

A company uses linear programming to plan production of two products. Which statement about the feasible region and the optimal solution is correct?

The optimal solution lies at a vertex of the feasible region, because the objective function is linear and the highest contribution is reached where constraints intersect, not at the origin or in the interior.

  1. AThe optimal solution is always found at the origin
  2. BThe optimal solution lies at a vertex (corner point) of the feasible regionCorrect
  3. CThe optimal solution must lie in the middle of the feasible region
  4. DThe optimal solution is found where the objective function line is furthest from the constraints

Explanation

With a linear objective function, the best value is reached at a corner point of the feasible region, where constraints intersect. The origin gives zero production and so zero contribution. Interior points can always be improved by moving towards a corner.

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