OPERATIONS RESEARCH >INTERNATIONAL EDITI
OPERATIONS RESEARCH >INTERNATIONAL EDITI
4th Edition
ISBN: 9780534423629
Author: WINSTON
Publisher: CENGAGE L
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Chapter 5, Problem 11RP

a.

Explanation of Solution

Cost function

  • Let ci be the number of cars produced at plant i.
  • From the LINDO output, the cost function value is determined by the equation C(x) = FC + V(x)

b.

Explanation of Solution

Smallest decrease

  • 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 r

c.

Explanation of Solution

Production target

  • From the LINDO output, the total cost increases by 70.
  • Hence the cost of producing more cars is 70...

d.

Explanation of Solution

Fall of firm’s cost

  • From the LINDO output, when each type of labour is payed for an extra hour then its objective function coefficient will be increased to 45.
  • Here the productivity of labour is decreased from 1.5 hours to 1 hour per automobile.
  • Hence as a result, the solution remains optimal...

e.

Explanation of Solution

Increase in cost

  • From the LINDO output, if 2000 autos are produced, then the allowable increase will be 600.
  • As a result, here the current solution remains optimal...

f.

Explanation of Solution

Optimal 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:

     Key row value = Current key row va

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