If funding is available to purchase additional resources, then a decision maker must recommend that the company invest in resources represented by:
A) A binding constraint.
B) A non-binding constraint.
C) A non-negativity constraint.
D) None of the above

Question

Quizplus · Accepted Answer

A binding constraint in optimization problems, including those related to resource allocation, directly limits the optimal solution. Investing in resources that are represented by a binding constraint can potentially improve the solution by relaxing the constraint, allowing for better utilization of resources and possibly enhancing overall performance or profit. Non-binding constraints do not limit the current solution, and non-negativity constraints are basic conditions that ensure variables do not take on negative values, which typically do not represent a direct opportunity for investment.

If Funding Is Available to Purchase Additional Resources, Then a Decision