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How can you explain the more for less paradox

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Reference no: EM131644195

Question: Here is a problem to challenge your intuition. In the original Grand Prix example, reduce the capacity of plant 2 to 300. Then the total capacity is equal to the total demand. Rerun Solver on the modified model. You should find that the optimal solution uses all capacity and exactly meets all demands with a total cost of $176,050. Now increase the capacity of plant 1 and the demand at region 2 by one automobile each, and optimize again. What happens to the optimal total cost? How can you explain this "more for less" paradox?

Reference no: EM131644195

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