Leatherco manufactures belts and shoes. A belt requires 2 square yards of leather and 1hour of skilled labor. A pair of shoes requires 3 sq yd of leather and 2 hours of skilled labor. As many as 25 sq yd of leather and 15 hours of skilled labor can be purchased at aprice of $5/sq yd of leather and $10/hour of skilled labor. A belt sells for $23, and a pairof shoes sells for $40. Leatherco wants to maximize profits (revenues -costs). Formulate an LP that can be used to maximize Leatherco’s profits. Then find and interpret theshadow prices for this LP.
Leatherco manufactures belts and shoes. A belt requires 2 square yards of leather and 1hour of skilled labor. A pair of shoes requires 3 sq yd of leather and 2 hours of skilled labor. As many as 25 sq yd of leather and 15 hours of skilled labor can be purchased at aprice of $5/sq yd of leather and $10/hour of skilled labor. A belt sells for $23, and a pairof shoes sells for $40. Leatherco wants to maximize profits (revenues -costs). Formulate an LP that can be used to maximize Leatherco’s profits. Then find and interpret theshadow prices for this LP.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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Leatherco manufactures belts and shoes. A belt requires 2 square yards of leather and 1
hour of skilled labor. A pair of shoes requires 3 sq yd of leather and 2 hours of skilled labor. As many as 25 sq yd of leather and 15 hours of skilled labor can be purchased at a
price of $5/sq yd of leather and $10/hour of skilled labor. A belt sells for $23, and a pair
of shoes sells for $40. Leatherco wants to maximize profits (revenues -costs). Formulate an LP that can be used to maximize Leatherco’s profits. Then find and interpret the
shadow prices for this LP.
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