高级管理会计Advanced Management Accounting Strategy, management accounting, and decision making.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * there are three types of constraints: Resource constraints Structural constraints Marketing constraints * Steps in linear programming: Step 1: Determine the objective. What is the goal? Write the goal in terms of an equation. This equation is called the objective function. Step2: Specify the constraints. Like the objective, each constraint needs to be written in the form of an equation, which will be either an equality or inequality. These equations are mathematical models of the relationships in the problem. Step3: Compute the optimal solution. There are three approaches to computing the optimal solution: Trial-and-error, Graphic, and Computer modelling. * EXAMPLE 1.3  The Firefly Woodworking Tool Company Available daily capacity Use of capacity in hours per unit of product Daily maximum production in units department In hours 03-L65 02-k64 03-L65 02-k64 Assembly 600 machine hours 4.0 2.0 150 300 testing 120 inspection hours 0.5 1.0 240 120 * Department Capacity (per Day) in Product Units Product Assembly Testing Selling price Variable Contribution 03-L65 150 240 €1,000 €635 €365 02-K64 300 120 €800 €550 €250 * 1. Trial-and-error approach Let A = 03-L65 and B = 02-K64 4A + 2B = 600 (1) 0.5A +1B = 120 (2) Thus: A=120 B=60 TCM=120*365+60*250=58800 You can try it with other corn point to compare. * 2.Graphic approach Choose an artificial contribution margin, for example €18,250. 4A+2B=600 0.5A+1B=120 Feasible region * 3. Computer modelling Maximize:z=365A+250B Subject to : 4A+2B=600 0.5A+1B=120 A≥0,B≥0 * TOPIC 1.8 Make-or-buy and add-or-drop decisions * For make-or-buy decisions, costs of producing a product must be ≤ cost of purchasing, taking into account production constraints, to justify making the product. Similarly,