OPERATIONS RESEARCH >INTERNATIONAL EDITI
OPERATIONS RESEARCH >INTERNATIONAL EDITI
4th Edition
ISBN: 9780534423629
Author: WINSTON
Publisher: CENGAGE L
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Chapter 5, Problem 13RP

a.

Explanation of Solution

Optimal solution

  • From the LINDO output, the objective function value is 2333.33.
  • If the cost for producing 1000 tools at ...

b.

Explanation of Solution

Pay for additional labour

  • From the LINDO output, the reduced cost of labour is 19.7333.
  • Here the price for an additional hour of labour is reduced to $4...

c.

Explanation of Solution

Increasing production capacity

  • Here the consultant offers to increase plant 1’s production capacity by 5000 tools.
  • The production capacity of 5000 tools has a cost of $400...

d.

Explanation of Solution

Pay for additional nurses

  • From the LINDO output, the old optimum value is 2333.33.
  • The shadow price of row 4 is 0.26667.
  • Hence the pay for additional nurses is given by:

    Pay = 2333

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