Question: Use the above answer and sensitivity reports to answer the following questions ( a ) What is the optimal solution, and what is the total
Use the above answer and sensitivity reports to answer the following questions
a What is the optimal solution, and what is the total production cost associated with this solution?
b Which constraints are binding? Explain.
c The production manager noted that the only constraint with a negative shadow price is the constraint on the capacity of the new production line. The managers interpretation of the shadow price was that a oneunit increase in the righthand side of this constraint would actually increase the total production cost by $ per unit. Do you agree with this interpretation? Would an increase in capacity for the new production line be desirable? Explain.
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