PMF5

Syllabus C3. Limiting Factors 4 / 7

a) Identify limiting factors in a scarce resource situation and select an appropriate technique.
b) Determine the optimal production plan where an organisation is restricted by a single limiting factor, including within the context of “make” or “buy” decisions.
c) Formulate and solve multiple scarce resource problem both graphically and using simultaneous equations as appropriate.
d) Explain and calculate shadow prices (dual prices) and discuss their implications on decision-making and performance management.
e) Calculate slack and explain the implications of the existence of slack for decision-making and performance management.(Excluding simplex and sensitivity to changes in objective functions)
Limiting Factors