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Describe the Linear Programming Concepts, shadow price and sensitivity
Problem 1- What does the shadow price reflect in a maximization problem? Explain.
Problem 2- How do the graphical and computer-based methods of solving LP problems differ?
Problem 3- In what ways are they the same?
Problem 4- Under what circumstances would you prefer to use the graphical approach?
Problem 5- How does sensitivity analysis affect the decision making process?
Problem 6- How could it be used by managers?
You need to explain the concepts of shadow price and maximization problem, differences between graphical and computer-based methods of solving LP problems differ, and sensitivity analysis in decision making process.
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