Question: Question content area bottom Part 1 The reduced costs indicate how much the cost needs to be increased how much the demand needs to be
Question content area bottom
Part
The reduced costs indicate
how much the cost needs to be increased
how much the demand needs to be reduced
how much the cost needs to be reduced
how much the demand needs to be increased
in order for the optimal solution for that variable to become
positive.
zero.
For example, the reduced cost of
enter your response here
for Akron to Indianapolis indicates by how much the
shipping cost
capacity
demand
would need to change in order for shipping on this route to become profitable. The reduced cost of
enter your response here
for Evansville to Chicago and the reduced cost of
enter your response here
for Evansville to Pittsburgh are interpreted similarly.
The shadow prices for Akron and Evansville tell how much the
demand
capacity
shipping cost
will change if the
demand
cost
capacity
increases by For Akron, a
capacity
demand
cost
increase of will result in a cost reduction of
$enter your response here
up to an increase of
enter your response here
units. For Evansville, the shadow price of
$enter your response here
means that a capacity increase of will result in
a cost increase of $
a cost reduction of $
no cost reduction.
The shadow prices for Chicago, Cincinnati, Indianapolis, and Pittsburgh tell how much the
demand
capacity
cost
will change if the
capacity
cost
demand
increases by For example, the shadow price of
$enter your response here
for Chicago indicates the
capacity
total shipping cost
demand
will change by this much per unit, up to an increase of
enter your response here
units. The shadow prices of
$enter your response here
for Cincinnati,
$enter your response here
for Indianapolis, and
$enter your response here
for Pittsburgh are interpreted similarly.
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