Question: Suppose that the objective of a two-variable optimization model is to maximize 20X1 + 13X2, and that we find by graphing that the binding constraints

Suppose that the objective of a two-variable optimization model is to maximize 20X1 + 13X2, and that we find by graphing that the binding constraints are:

(3) 9X1+3X287 (7) 4X1+6X262

Based on the above, the optimal solution is at X1 = 8, X2 = 5, and OFV = 225.

(a) For the objective function coefficients, find the allowable increase and decrease for each coefficient (based on one-at-a-time changes).

(b) Suppose that the right-hand side of (3) is changed to 87+b3. Find expressions for the values of X1, X2, and OFV as a function of b3, and from the latter state the shadow price of this constraint. [Do not worry about the allowable range.]

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