Answer report
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Left hand side = right hand side
BINDING
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Left hand side ≠ Right hand side
NON BINDING
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If nonbinding you have leftover and should of put more money towards more units
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Slack would be the difference between left hand side & right hand side
Shadow price
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Ex. If malt increases from 50
60 what will be optimal value of objective function
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Originally was 380 so 380 + (6050) x 3 = 410
o
You multiply by 3 b/c 3 is the shadow price of malt (for every increase of 1 you multiply by 3)
Forecasts
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Group forecasts are more accurate than individual forecasts
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Moving average with small period generates better forecast than one with large period
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Exponential smoothing with large alpha generates better forecast than with small alpha
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The larger the n, the smoother it is
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The smaller the n, the more responsive to change of demand
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The larger the ά, the more responsive your forecast tends to be
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The smaller the ά, the more weight you give to historical data & the smoother it is
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when there is a trend in the data, using more observations results in a forecast with larger error
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 '07
 Vaitsos
 Management

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