What will be the outcome of the linear program that uses the correct constraints but focuses on cost minimization rather than profit maximization?
A)The answer to this formulation will be identical to the profit maximization answer.
B)Each product will be produced to a level equal to its minimum constraint.
C)No raw materials will be used
D)The answer to this formulation will be identical to a revenue maximization formulation.

Question

Quizplus · Accepted Answer

If the linear program is focused on cost minimization instead of profit maximization, the solver will look for the solution that minimizes costs while still satisfying all the constraints. Therefore, the optimal solution will produce each product at its minimum constraint level, as this is the lowest cost way to satisfy demand. Option A is incorrect because profit maximization and cost minimization are different objectives, therefore the solutions will not be identical. Option C is incorrect because if no raw materials are used, no products can be produced at all. Finally, option D is incorrect because again, profit maximization and cost minimization are different objectives and will result in different solutions.

What Will Be the Outcome of the Linear Program That