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Final Exam #8 - Labor is binding and leaves nothing left...

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Title: BUSI 508 Final Exam Author: Taryn Lopez Problem #8 Binding/slack reach the optimal solutions. The range of variation on each objective function coefficient that does not  change the current optimal solution? Large 360 to infinity Medium 300 to 440 Small -infinity to 360 To reach optimal solution of 384000, there must be 600 large widgets, 400 medium widgets,  and 0 small widgets. Shadow price the optimal solution the best improvement if one more unit was added.                                Non-zero decision variables have to increase by 300+60=360 before it would be profitable to make Small widgets. 
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Unformatted text preview: Labor is binding, and leaves nothing left. Large <=400 is binding, and leaves nothing left. Area has slack on 3,000, which means there is 3,000 still available in area that was not needed to Labor If one more unit of Labor was available, profit would increase by $360, which would give Large <= 400 If one more unit of Large<=400 was available, profit would increase by $60 Small To make Small widgets a non-zero, the current objective function coefficient would...
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