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Constraints
1) A constraint of the type ≤ (≥) can be converted to an equation by adding a slack variable to (subtracting a surplus variable form) the left side of the constraint.
For illustration, in the constraint: XI + 2X2 ≤ 6 we add a slack SI ≥ 0 to the left side to obtain the equation: XI + 2X2 + SI = 6, SI ≥ 0.
If the constraint represents the limit on the usage of a resource, SI will represent the slack or unused amount of the resource.
After that consider the constraint: 3XI + 2X2 - 3X3 ≥ 5, we subtract a surplus variable S2 ≥ 0 from the left side to obtain the equation.3XI + 2X2 - 3X3 - S2 = 5, S2 ≥ 02) The right side of an equation can always be made non-negative by multiplying both sides by -1.
For illustration, 2XI + 3X2 - 7X3 = -5 is mathematically equivalent to -2XI - 3X2 + 7X3 = +5.3) The direction of an equation is reversed when both sides are multiplied by -1. For illustration, whereas 2 < 4, -2 > -4. Thus the inequality 2XI - X2 ≤-5 can be replaced by -2XI + X2 ≥ 5.
Discuss the dominant compensation philosophy, share value creation and the link between company size and executive pay. Solve Parmalat''s case, which may be found in reading No. 8.
Ordering Costs These are incurred in getting purchased items into the company’s inventory or stores, and usually consist of clerical costs of: • Making the purchase demand.
In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their
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