Question: Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000

 Consider again the linear program (P) that appeared in Problem 2A

Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000 This linear program (P) describes a proft maximization problem of some production process. Constraint (1) is a capacity constraint, where 100 is the current capacity. Constraint (2) is a budget constraint, where $4000 is the maximum amount that can be spent. Let (D) be the dual of (P). The optimal solutions to (P) and (D) are (ti,2) (25,75) and (71,72) (32.5,0.75). respectively. Before you start your production operation, (a) Suppose you can borrow $100, use it to increase your budget to $4100, and pay it back at $180. Should you do it or not? (b) Suppose you can take $100 from your current budget and use it to increase your current capacity from 100 to 110. Should you do it or not? Please answer the above questions without solving the LPs. Consider again the linear program (P) that appeared in Problem 2A of last assignment: max 40+702 s.t. 1 2 100 10xi + 50x2 K 4000 This linear program (P) describes a proft maximization problem of some production process. Constraint (1) is a capacity constraint, where 100 is the current capacity. Constraint (2) is a budget constraint, where $4000 is the maximum amount that can be spent. Let (D) be the dual of (P). The optimal solutions to (P) and (D) are (ti,2) (25,75) and (71,72) (32.5,0.75). respectively. Before you start your production operation, (a) Suppose you can borrow $100, use it to increase your budget to $4100, and pay it back at $180. Should you do it or not? (b) Suppose you can take $100 from your current budget and use it to increase your current capacity from 100 to 110. Should you do it or not? Please answer the above questions without solving the LPs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Databases Questions!