COMM 163 Lecture Notes - Feasible Region, Shadow Price, Sensitivity Analysis
18 Oct 2011
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Xi = # of people to start on day i, i = 17. Objective: minimize cost = minimize total hours worked, which is equivalent to total number of people employed. Because everyone is paid the same constraints: daily minimum hours requirement monday: 6(xi+x4+x5+x6+x7) >= 150. The optimal solution can change (changes to the slope of the iso-profit line) An optimal solution may or may not change. If the opt. value of a decision variable is >0, then the reduced cost = 0. The opt. value of a decision variable = 0, then red. cost. Reduced cost is the change in objective value, in case you make 1 unit of this product changes in rhs values. Feasible region may change (old optimal solution may no longer by feasible = new opt solution. Change in objective value that corresponds to unit change in the rhs value.
