Dictionary of Accounting Terms: Optimal (OPTIMUM) Solution
Optimal (OPTIMUM) Solution
either the most profitable or the least costly solution that simultaneously satisfies all the constraints of a Linear Programming (LP) problem. There are two important general properties of an optimal solution: (1) The optimal solution lies on the boundary of the feasible region; the implication of this property is that one can ignore the (infinitely many) interior points of the feasible solution region when searching for an optimal solution. (2) The optimal solution occurs at one of the corner points of the region; this property reduces even further the magnitude of the search procedure for an optimal solution.