Stor. Assign. 7

Stor. Assign. 7 - them would be a sure thing, compared to...

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1. It will cost the company nothing because the shadow price is 0 for a decrease of up to 3. 2. It will decrease the cost 1600 because the shadow price is -800 for a decrease of 2. 3. The minimum price to make that route possible would be 1600 (the reduced cost). 4. If you could send one fewer plane you would get 2400 if you did not send the plane to Washington, 4800 for Chicago, and 2400 for Atlanta. Thus, you would choose to not send the plane to Chicago because you would save the most money. 5. If you could send two fewer planes you would save 2400 + unknown (the allowable decrease is only 1) for Washington, 4800 + unknown for Chicago, or 4800 for Atlanta. Thus, you would still probably choose to send one less plane to Chicago, and then one less plane to Washington or Atlanta (because the 2400 you would save from either of
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Unformatted text preview: them would be a sure thing, compared to the variable quantity that you could save from sending another less plane to Chicago). 6. Sending one extra plane from Boston to Atlanta would cost 1600 extra, so you would be better off just re-booking the passengers tomorrow for only 1000. 7. Sending one extra plane from Boston to Washington would only cost 400 extra, so you would be better off doing that, and not re-booking the passengers for 800. 8. You would be willing to pay up to 800 to fix the broken plane in NY (shadow price of -800 for an increase of 1), and you would be willing to pay nothing to fix the plane in Boston (shadow price of 0 for an increase of 1)....
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