The Allowable Increase for a Constraint Is

question 10

Multiple Choice

The allowable increase for a constraint is

• A) how many more units of resource to purchase to maximize profits.
• B) the amount by which the resource can increase given shadow price.
• C) how much resource to use to get the optimal solution.
• D) the amount by which the constraint coefficient can increase without changing the final optimal value.

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Definitions:

Physical Flow

The movement of physical goods or materials within a production process or supply chain.

Ending Inventory

The total value of all the goods available for sale at the end of an accounting period.

Average Unit Cost

The cost incurred for producing a single unit, calculated by dividing the total cost of production by the number of units produced.

Units

A measure of quantity representing the amount of product or service.