Management Science

4285716 2021715 ls 05 2 which variables is

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a payback period of 9 to 10 months 3). By how much could Speedie raise its rate without losing any of Consolidated business? By up to $0.133 per ton- mile, the allowable increase for LS from objective coefficient sensitivity analysis. Mexicana Case 3. Using these shadow prices from each constraint, we can compute the marginal cost1). Compute the marginal cost for each decision variable. Marginal cost for: T = 10000*(0.5)+15000*(0.108571429)+1*(571.4285716)+1*(0)=$2800 M = 8000*(0.5)+8000*(- 0.108571429)+1*(- 571.4285716)+1*(0)=$2560 P= 6000*(0.5)+5000*(- 0.108571429)+0.5*(- 571.4285716)+- 2*(0)=$2171.5 LS = 0.5 2). Which variable(s) is active, i.e. positive value at the optimal solution? Active variables: T, M, and LS. 1. The selling price of W0005X is $130 and its profit is $60 but the solution shows no production for this product. What is the lowest profit for W0005X to be considered for prod...
View Full Document

Ask a homework question - tutors are online