A Binding Greater Than or Equal to (≥) Constraint in a Minimization

question 55

Multiple Choice

A binding greater than or equal to (≥) constraint in a minimization problem means that

• A) the variable is up against an upper limit.
• B) the minimum requirement for the constraint has just been met.
• C) another constraint is limiting the solution.
• D) the shadow price for the constraint will be positive.

---

Definitions:

Production Constraint

Any factor that limits the volume or type of production a company can achieve, such as equipment capacity or availability of materials.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a product, indicating how much revenue contributes towards covering fixed costs and profit.

Constrained Resource

A limited resource in a production or project environment that restricts the output or progress of operations.

Vertically Integrated

A company structure where the supply chain of a company is owned or controlled by that company, from raw materials to final product distribution.