OPERATIONS RESEARCH >INTERNATIONAL EDITI
OPERATIONS RESEARCH >INTERNATIONAL EDITI
4th Edition
ISBN: 9780534423629
Author: WINSTON
Publisher: CENGAGE L
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Chapter 5, Problem 10RP

a.

Explanation of Solution

Optimum solution

  • The new optimum solution value or profit is calculated by the given formula:

    New value = Old value – (Key column value × Key row value) / Key value

  • The key row value can be calculated by the given formula:

  

b.

Explanation of Solution

Optimum solution

  • The new optimum solution value or profit is calculated by the given formula:

    New value = Old value – (Key column value × Key row value) / Key value

  • The key row value can be calculated by the given formula:

  &#

c.

Explanation of Solution

Meeting demand

  • From the LINDO output, the shadow price for month 1 is 430.
  • Thus if the demand of month 1 is increased by one, then the total cost decreases by -1.
  • Hence the total cost is the shadow price of month 1 that is -430 since the total cost decreases by -1...

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