{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Management Science

# From demand shadow price it is 05 per ton mile

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

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: w parking space, and truck mix. much ton- miles S.T. will be delivered 10000T+8000M+6000P+LS=400000 (Demand) by speedie each 15000T+8000M+5000P<=380000 (Capital Budget) year? T+M+0.5P<=28 (Parking Space) In Answer Report: T+M- 2P>=0 (Truck Mix) Final val LS* 12 T, M, P, LS>=0 (Non- negativity) 5.) 1. What is the incremental cost of additional monthly demand for transportation? From demand shadow price, it is \$0.5 per ton- mile increase. 2). What would an additional \$20000 in the equipment budget achieve? This change is within the allowable increase for the budget constraint, so the shadow price (–0.1086) applies. Monthly operating costs would be reduced by \$0.1086 x 20000 = \$2172. Depending on capital costs, the budget increase would have...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online