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Management Science

From demand shadow price it is 05 per ton mile

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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...
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