iso

PROFIT
LINE
 ISOPROFIT LINE
What does “isoprofit” mean?

1Iso means “equal” or

“similar”

2 Represents a line
with all profits the
3 Involves graphing
parallel lines
same
 SAMPLE GRAPH
REMEMBER!
Any combination of
Product 1 and
Product 2 on the line
Product 1

will produce the

same profit

Product 2
 EXAMPLE
Let us assume a profit of $2,100 on the previous example,
Flair Furnitures.

ISOPROFIT LINE
$2100 = 70T + 50C

Chairs (c)
This represents all
combinations of (T,C) that
would yield a total of
$2,100 profit.

Tables (T)
Group points
 Corner
POINT
SOLUTION
CORNER POINT SOLUTION
What is corner point solution?

1 This technique is simpler conceptually than the

Isoprofit line, but involves looking at every corner
point of the feasible region.

The idea that the optimal solution will

lie in one of the corner points.
2
 SAMPLE GRAPH
Is solved by looking
for the value of P1
when P2 is zero, vice
versa.
Product 1

This will
always be (0,0)
Product 2
 EXAMPLE
Recall that the given constraints were:

4T + 3C = 240 (carpentry)
2T + 1C = 100 (painting)

To eliminate T and get C Use the value of C to

get T
4T + 3C = 240 4T + 3C = 240
-4T – 2C = 200 4T = 240 – 3 (40)
C = 40 4T = 120
T = 30
 EXAMPLE
Recall the objective function:

Maximize Profit = 70T + 50C

Number of Tables Number of Chairs Profit

0 0 $0
50 0 $3500
0 80 $4000
30 40 $4100
Group points
 SLACK
What is “slack”?

Term slack is used for the amount of

resource that is not used.

Slack = (Amount of resource available) – (Amount used)

NOTE
For optimal solutions, there will be zero slack.
 SURPLUS
What is “surplus”?

Indicates the amount by which the

actual amount exceeded the
minimum amount.

Surplus = (Actual Amount) – (Minimum Amount)

For example, had there been a constraint of at least 42 units ( T + C ≥ 42)

and the company decided to produce at the optimal level. In this case, there
will be a surplus of 28 ( 70 – 42 = 18)
 remember
A constraint that has zero slack or surplus for
the optimal solution is called binding
constraint.

A constraint with positive slack or surplus for

the optimal solution is called nonbinding
constraint.