Question: The following linear programming problem has been solved by Excel's Solver. Use the output to answer the questions. Consider the following linear program: MIN 1

The following linear programming problem has been solved by Excel's Solver. Use the output to answer the questions. Consider the following linear program:
MIN 12*1+10*2+9*3
ST 5 X1+8 X2+5 X3>-608 X1+10 X2+5 X3>=80
a) What is the solution to the problem?
b) Which constraints are binding?
c) Interpret the reduced cost for x1
d) What would happen if the cost of x1 dropped to 10 and the cost of x2 increased to 127
Final Value
Profit contribution
X1
0
0
X2
8
X3
0
80
0
Total
80
Variable Cells
Final Value
Reduced Cost
Objective Coefficient
Allowable. Increase
Allowable Decrease
Name
XI
0
4
12
IE+30
4
X2
8
0
10
5
10
X3
0
4
9
IE +30
4
Constraints
Final Value
Name
Shadow Price
Constraint R.H. Side
Allowable Increase
Allowable Decrease
Constraint 1
64
0
60
4
Constraint 2
80
1
80
a) According to the above equation, predict demand for months 2 to 7 by using exponential smoothing method with a=0.1 and forecast for first month equal to 50.

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