Some readings on dealing with resource constraints are useful. These include: (a) Bragg (2007; chapter 1) on the theory of constraints, and (b)Arnold and Turley (1996; Chapter 11) on "The effect of scarce resources on short-term decisions". There are specific references on Linear Programming, e.g. Bunday (1984).
Finally, you should explore how to use Excel Solver function to solve linear programming problems and compare your results with that of the simplex method. For that, refer to: http://josephho33.blogspot.hk/2011/11/conducting-quantitative-analysis-with.html
Also note a related topic on Theory of Constraints: http://en.wikipedia.org/wiki/Theory_of_Constraints
Related notes
Note 1
Note 2
Key concepts:
- shadow price: the extra contribution able to be obtained from one more unit of a scarce resource.
- Contribution margin: http://en.wikipedia.org/wiki/Contribution_margin
References
- Arnold, J. and Turley, S. (1996) Accounting for Management Decisions, Prentice Hall.
- Bragg, S.M. (2007) Throughput Accounting, Wiley.
- Bunday, B.D. (1984) Basic Linear Programming, Edward Arnold.
- Lucey, T. (2002) Quantitative Techniques, Thomson.
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