BU275 Lecture Notes - Lecture 6: Shadow Price, Flow Network, Carrot Cake
Document Summary
Bu275 lecture #6: sensitivity analysis (continued) & 8: profit from a carrot cake is , from a chocolate cake , and from ice-cream cake. : dakota believes that demand for cakes is unlimited, dakota wants to maximize the total profit. Reduced cost: properties of lps without equality constraints for maximization problem: reduced costs 0 for minimization problem: reduced costs 0 for any decision variable: final value*reduced cost = 0. Reduced cost and range of optimality: basic variable: range of optimality will be provided by excel solver, non-basic variable, maximization problem, minimization problem, minimization or maximization? minimization. 100% rule example the following is the solver output from a lp: now the new estimates of the unit profits for doors and windows are and. (cid:2191)(cid:2192) (cid:2192: (cid:2191)(cid:2192) (cid:2191, xij 0 for all i and j. { or =} si for each origin i: shipment out of origin i.
