Question: Given the following information for a product-mix problem with three products and three resources. Primal Decision Variables: x1 = number of unit 1 produced; x2

Given the following information for a product-mix

Given the following information for a product-mix problem with three products and three resources. Primal Decision Variables: x1 = number of unit 1 produced; x2 = # of unit 2 produced; x3 = # of unit 3 produced Primal Formulation: Dual Formulation: Max Z (Rev.) = 25xi + 30x2 + 20x3 Min W= 5071 + 2012 +25713 Subject to 8x1 + 6x2 25 4x1 + 2x2 + 3x3 30 2x1 + x2 + 2x3 20 X1, X2, X3 >0 (Nonnegativity) , 2, 3 > 0 + X3 7T1 Optimal Solution: Optimal Z= Revenue = $268.75 x1 = 0 (Number of unit 1) x2 = 8.125 (Number of unit 2) X3 = 1.25 (Number of unit 3) Resource Constraints: Resource 1 = 0 leftover units Resource 2 = 0 leftover units Resource 3 = 14.375 leftover units Dual Var. Optimal Value = 22.5 (Surplus variable in 1st dual constraint) Dual Var. Optimal Value = 0 (Surplus variable in 2nd dual constraint) Dual Var. Optimal Value = 0 (Surplus variable in 3rd dual constraint) Dual Var. Optimal Value = 3.125 = iti Dual Var. Optimal Value = 5.625 = 12 Dual Var. Optimal Value = 0 = t3 A. What is the fair-market price for one unit of Resource 3? B. What is the meaning of the surplus variable value of 22.5 in the 1st dual constraint with respect to the primal

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