Question: You have been hired to model a production process problem with 2 different processes that produce 2 different products. The linear program to determine the

You have been hired to model a production process

You have been hired to model a production process problem with 2 different processes that produce 2 different products. The linear program to determine the minimal cost way to run processes in order to satisfy demand is given below. min z = 2x1 +3.02 (Total Cost to Run Processes) s.t. 11 + 2.02 > 50 (Meet or Exceed Demand for Product 1) 21 +12 > 40 (Meet or Exceed Demand for Product 2) ri> 0 for all where x; is the number of times you run process i. The optimal basis to this problem is given by B = {(1, x2}. Your client charges a penalty cost if you produce less than the demand for product 1. What does this penalty cost need to be to ensure that your company satisfies the demand for product 1? Note: Some of the equations below may be helpful. If the penalty cost is slightly less than your answer to the previous question, then how much of product 1 should you produce? 1 10 0 1 = -1 -1 1 1 2 2 2 1 [1] [ ii" [? :]"-18 = -1 1 [ii] = [- Li] 1 :]"=[; __] i [oi]":[6 :] bi = 1 -1 0 -2 20 0.5 0 -0.5 1 :] =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!