Consider the given partial LINDO Code: MAX 50 BR+ 20 IC + 30 COLA + 80...

    

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Consider the given partial LINDO Code: MAX 50 BR+ 20 IC + 30 COLA + 80 PC s.t. 40 BR+ 20 IC + 15 COLA + 50 PC VARIABLE BR IC COLA PC ROW 2345 OBJ COEFFICIENT RANGES ALLOWABLE INCREASE 30.000000 20.000000 INFINITY 20.000000 CURRENT COEF 50.000000 20.000000 30.000000 80.000000 RIGHTHAND SIDE RANGES CURRENT RHS ALLOWABLE INCREASE 500.000000 INFINITY 6.000000 INFINITY 10.000000 123.333336 8.000000 25.333334 ALLOWABLE DECREASE INFINITY INFINITY 6.000000 INFINITY ALLOWABLE DECREASE 380.000000 6.000000 INFINITY INFINITY Using the LINDO code and LINDO output, answer the following. You should be able to answer all parts by looking at the code and output. Explain your answers to receive full credit. a) Suppose the price of a BR increases from 50 to 70. Does the current basis solution remain optimal? b) How much should we charge for BR to make it profitable? c) Suppose Walmart wants to buy our COLA but will only do business with us if we lower our price for them. What is the lowest price we can charge Walmart for COLA before changing the basis? d) Suppose the RHS value of Constraint 1 changes from 500 to 200. Does the current basis solution remain optimal? e) Suppose the RHS value of Constraint 2 changes from 6 to 10. Does the current basis solution remain optimal? f) How much would you pay for an additional unit of the resource in Constraint 1? Consider the given partial LINDO Code: MAX 50 BR+ 20 IC + 30 COLA + 80 PC s.t. 40 BR+ 20 IC + 15 COLA + 50 PC VARIABLE BR IC COLA PC ROW 2345 OBJ COEFFICIENT RANGES ALLOWABLE INCREASE 30.000000 20.000000 INFINITY 20.000000 CURRENT COEF 50.000000 20.000000 30.000000 80.000000 RIGHTHAND SIDE RANGES CURRENT RHS ALLOWABLE INCREASE 500.000000 INFINITY 6.000000 INFINITY 10.000000 123.333336 8.000000 25.333334 ALLOWABLE DECREASE INFINITY INFINITY 6.000000 INFINITY ALLOWABLE DECREASE 380.000000 6.000000 INFINITY INFINITY Using the LINDO code and LINDO output, answer the following. You should be able to answer all parts by looking at the code and output. Explain your answers to receive full credit. a) Suppose the price of a BR increases from 50 to 70. Does the current basis solution remain optimal? b) How much should we charge for BR to make it profitable? c) Suppose Walmart wants to buy our COLA but will only do business with us if we lower our price for them. What is the lowest price we can charge Walmart for COLA before changing the basis? d) Suppose the RHS value of Constraint 1 changes from 500 to 200. Does the current basis solution remain optimal? e) Suppose the RHS value of Constraint 2 changes from 6 to 10. Does the current basis solution remain optimal? f) How much would you pay for an additional unit of the resource in Constraint 1?

Answer rating: 100% (QA)

Answer a No the current basis solution does not remain optimal if the price of BR increases from 50 ... View the full answer