Given the following output for the optimal solution for a 4 variable (named BR, IC, COLA, and PC) and a 4 resource (constraint) problem; where the optimal objective function value is 1000 (and it is a maximization problem). Please write a short summary that answers the following questions: Suppose the price of a BR increases from 50 to 60 and the price of a PC decreases from 80 to 50. Does the current solution remain optimal (in terms of the variables > 0 in the optimal solution)? Suppose the price of a BR increases from 50 to 70 and the price of a PC increases from 80 to 90. Does the current solution remain optimal (in terms of the variables > 0 in the optimal solution)? How much would you pay for an additional unit of Resource 2 (Constraint 2)? Suppose you were to acquire 150 additional units of Resource 1 (Constraint 1), what would your new objective value be? In your follow-up posts please clarify any issues or justify your answers. Variable CellsCellNameFinal ValueReduced CostObjective CoefficientAllowable IncreaseAllowable Decrease$B$2 Variabies BR0-3050301E+30$C$2 Variables IC0-2020201E+30$D$2Variables COLA33.3333330301E+306$E$2VariabiesPC0-2080201E+30 ConstraintsCellNameFinal ValueShadow PriceConstraint R.H. SideAllowable IncreaseAllowable Decrease$F$5Resource 150025001E+30380$F$6Resource 20061E+306$F$7Resource 3133.33333010123.33333331E+30$F$8Resource 433.3333330825.333333331E+30

The reduced costs tell us how much the objective coefficients (price) can be increased or decreased…

Answered: Suppose the price of a BR increases…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Given the following output for the optimal solution for a 4 variable (named BR, IC, COLA, and PC) and a 4 resource (constraint) problem; where the optimal objective function value is 1000 (and it is a maximization problem). Please write a short summary that answers the following questions:

Suppose the price of a BR increases from 50 to 60 and the price of a PC decreases from 80 to 50. Does the current solution remain optimal (in terms of the variables > 0 in the optimal solution)?
Suppose the price of a BR increases from 50 to 70 and the price of a PC increases from 80 to 90. Does the current solution remain optimal (in terms of the variables > 0 in the optimal solution)?
How much would you pay for an additional unit of Resource 2 (Constraint 2)?
Suppose you were to acquire 150 additional units of Resource 1 (Constraint 1), what would your new objective value be?

In your follow-up posts please clarify any issues or justify your answers.

Variable Cells

Cell	Name	Final Value	Reduced Cost	Objective Coefficient	Allowable Increase	Allowable Decrease
$B$2	Variabies BR	0	-30	50	30	1E+30
$C$2	Variables IC	0	-20	20	20	1E+30
$D$2	Variables COLA	33.333333	0	30	1E+30	6
$E$2	VariabiesPC	0	-20	80	20	1E+30

Constraints

Cell	Name	Final Value	Shadow Price	Constraint R.H. Side	Allowable Increase	Allowable Decrease
$F$5	Resource 1	500	2	500	1E+30	380
$F$6	Resource 2	0	0	6	1E+30	6
$F$7	Resource 3	133.33333	0	10	123.3333333	1E+30
$F$8	Resource 4	33.333333	0	8	25.33333333	1E+30