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Unformatted text preview: desirable. e. Because constraint 4 is not a binding constraint, any increase in the production line capacity of the old production line will have no effect on the optimal solution. Thus, there is no benefit in increasing the capacity of the old production line. f. The reduced cost for Model A made on the old production line is 5. Thus, the cost would have to decrease by at least $5 before any units of model A would be produced on the old production line. g. The right hand side range for constraint 2 shows an allowable decrease of 20,000. Thus, if the minimum production requirement is reduced 10,000 units to 60,000, the dual value of 40 is applicable. Thus, total cost would decrease by 10,000(40) = $400,000....
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This note was uploaded on 05/01/2011 for the course BUS 220 taught by Professor Drexel during the Fall '08 term at SUNY Stony Brook.
 Fall '08
 drexel

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