Consider the linear program in Problem 1. The value of the optimal solution is 27. Suppose that
Question:
Consider the linear program in Problem 1. The value of the optimal solution is 27. Suppose that the right-hand side for constraint 1 is increased from 10 to 11.
a. Use the graphical solution procedure to find the new optimal solution.
b. Use the solution to part (a) to determine the shadow price for constraint 1.
c. The sensitivity report for the linear program in Problem 1 provides the following righthand- side range information:
What does the right-hand-side range information for constraint 1 tell you about the shadow price for constraint 1?
d. The shadow price for constraint 2 is 0.5. Using this shadow price and the right-hand-side range information in part (c), what conclusion can you draw about the effect of changes to the right-hand side of constraint 2?
Step by Step Answer:
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam