A pig weighting 200 pounds gains 5 pounds per day and costs 45 cents a day to keep. The market price for pigs is 65 cents per pound, but is falling 1 cent per day. a/ When should the pig be sold? What is the optimal profit? b/ What are the sensitivities of the optimal time and optimal profit with respect to the 45-cent upcost? c/ What are the sensitivities of the
A pig weighting 200 pounds gains 5 pounds per day and costs 45 cents a day to keep. The market price for pigs is 65 cents per pound, but is falling 1 cent per day. a/ When should the pig be sold? What is the optimal profit? b/ What are the sensitivities of the optimal time and optimal profit with respect to the 45-cent upcost? c/ What are the sensitivities of the
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter5: Sensitivity Analysis: An Applied Approach
Section5.1: A Graphical Introduction To Sensitivity Analysis
Problem 4P
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Question
A pig weighting 200 pounds gains 5 pounds per day and costs 45 cents a
day to keep. The market price for pigs is 65 cents per pound, but is falling 1 cent per
day.
a/ When should the pig be sold? What is the optimal profit?
b/ What are the sensitivities of the optimal time and optimal profit with respect to the
45-cent upcost?
c/ What are the sensitivities of the optimal time and optimal profit with respect to the
1-cent market depreciation?
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