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Management Science

# 4285716 2021715 ls 05 2 which variables is

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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...
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