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The manager of FYZ Incorporated has been presented with the following LP model:
minimize Z = 30A + 45B (cost)
subject to
5A + 2B ? 1004A + 8B ? 240B ? 20A and B ? 0
The manager would like your assistance in answering her questions:
a. What are the optimal values of A and B? What is the minimum cost?
b. If the cost of B could be reduced to $42 per unit, how many units of B would be optimal? What would the minimum cost be?
c. What is the shadow price for the RHS of the first constraint? Over what range is it valid?
d. By what amount would the cost change, and in what direction, if the first constraint was changed to 110?
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