Compute and interpret the ranges of optimality

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Reference no: EM131861519

Max	4X₁ + 5X₂ + 6X₃
s.t.	X₁ + X₂ + X₃ = 85	(Production capacity)
	X₁ + 4X₂ + X₃ =280	(Material A requirements)
	X₁ + 4X₂ + 4X₃ =320	(Material B requirements)

Cell	Name	Final Value	Reduced Cost	Objective Coefficient	Allowable Increase	Allowable Decrease

$B$8	X₁	0	1.5	4	1E + 30	1.5
$C$8	X₂	80	0	5	1	5
$D$8	X₃	0	1	6	1E + 30	1

Constraints

Cell	Name	Final Value	Shadow Price	Constraint R.H. Side	Allowable Increase	Allowable Decrease

$B$13	Production Capacity	80	0	85	1E+30	5
$B$14	Material A	320	0	280	40	1E+30
$B$15	Material B	320	1.25	320	20	40

1. What are the shadow prices for each resource? Interpret.

2. What are the reduced costs? Interpret them in this context.

3. Compute and interpret the ranges of optimality.

4. Compute and interpret the ranges of feasibility.

Reference no: EM131861519

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