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CMA Intermediate · Operations Management and Strategic Management · Optimum Allocation of Resources - LPP

In a final simplex table of a maximisation problem, the Cj - Zj value for a non-basic decision variable is -3. Which interpretation is correct?

A Cj - Zj of -3 for a non-basic variable means each unit forced into the solution would decrease the objective by ₹3. Therefore the present solution remains optimal, since no non-basic variable can improve profit in a maximisation problem.

  1. AIntroducing one unit of that variable would reduce the objective value by ₹3, so the current solution stays optimalCorrect
  2. BIntroducing one unit of that variable would raise the objective value by ₹3
  3. CThe solution is infeasible
  4. DThe problem has alternative optimal solutions

Explanation

A negative Cj - Zj for a non-basic variable in a maximisation problem means forcing one unit into the solution lowers profit by 3 per unit. Hence no improvement is possible and the solution is optimal. Alternative optima would need a zero value.

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