OPERATIONS RESEARCH >INTERNATIONAL EDITI
OPERATIONS RESEARCH >INTERNATIONAL EDITI
4th Edition
ISBN: 9780534423629
Author: WINSTON
Publisher: CENGAGE L
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Chapter 5, Problem 15RP

a.

Explanation of Solution

Profit

  • 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

Pay for additional labour

  • From the LINDO output, the shadow price of row 7 is 43.82.
  • Here labours can be purchased at $15 per hour.
  • Hence the pay for additional labour is given by
...

c.

Explanation of Solution

Pay for another bushel of alfalfa

  • From the LINDO output, the shadow price of row 4 is 11.76...

d.

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:

  

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