The humanities and social science

2011 Issue №3

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The mathematic modelling of the product manufacturing under heterogeneous constraints



This paper addresses the problem of optimizing a company's cost performance under heterogeneous constraints. The author proves the appropriateness and efficiency of applying the Lagrange multipliers to this end, which makes it possible to move from the conditional to the unconditional extremum. The article shows that, under certain conditions, the Lagrange multiplier based approach can be applied to differential cost accounting for the production of a multiproduct firm.


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