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Unformatted text preview: 1.) A. I t will stay the same because the increase can be infinite. B. The max. profit will go up by 1.5 because of the shadow price. C. The max. profit will go up by 1 because of the shadow price. D. The max. profit will go up by 2, one for each unit that increases, due to the shadow price. E. The constraints for Resource 2 and Resource 3 are binding because their shadow prices are not equal to 0. F. We can decrease the RH constraint of Resource 1 by 2 and not change anything because i ts shadow price is 0 for a decrease up to 2. 2.) 1. 48000 because that is the number in the final value column. 2. Lioness would have to offer a discount of 1.5 per unit. 3. Yes because it changes the objective function.h 4. No because the value of that lumber would only by 7.5 x 1000, which is on 7500. 5. 31545 hours because that is the amount in the allowable decrease column for which shadow price will remain 0. 6. 300 x 16.5 (the shadow price)=4950, the amount that should be spent. 7. Yes, anything less than 10 per unit would be better than the current shadow price of 10. 8. No, because the shadow price is 0, meaning that you would not gain or lose any money per unit anyway. ...
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This note was uploaded on 06/07/2011 for the course STOR 112 taught by Professor Rubin,david during the Fall '06 term at UNC.
 Fall '06
 RUBIN,David

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