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

In a graphical LPP, the objective function is maximised and its iso-profit line is moved parallel to itself away from the origin. The optimum solution is reached at:

The optimum is the last point of the feasible region that the iso-profit line touches as it moves away from the origin. That point is normally a corner of the region, because beyond it the line would lie wholly outside the feasible area.

  1. AThe last point of the feasible region touched by the iso-profit lineCorrect
  2. BThe first point of the feasible region touched by the line
  3. CThe origin always
  4. DThe midpoint of the longest edge

Explanation

For maximisation, the iso-profit line is pushed outward as far as it still touches the feasible region. The last contact point, a corner (or an edge in case of multiple optima), is optimal. The first contact point would be the minimum.

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