- Refer to the model listed next: Max: Z= 10*x1+6*x2+4*x3; Subject to: x1+x2+x3<=100; (technical) 10*x1+ 4*x2+5*x3 <= 600; (labor) 2*x1+2*x2+6*x3=300; (administration) x1,x2,x3>=0; where x1,x2 and x3 are the number of product 1,2 and 3 produced. (i) (ii) (iii) (iv) (v) 333 (vi) Identify the initial basis with your reason. Show one complete iteration as the solution moves to the next basis. Find the optimal basis. You may solve the problem for the optimal solution using the Lingo software but must validate the optimal basis. Estimate the optimal simplex multipliers. Solve the model using the Lingo software and report the dual prices for each constraint. Compare the optimal simplex multipliers with the shadow prices for different constraints and provide your comments.

- Refer to the model listed next: Max: Z= 10x1+6x2+4x3; Subject to: x1+x2+x3<=100; (technical) 10x1+ 4x2+5x3 <= 600; (labor) 2x1+2x2+6*x3=300; (administration) x1,x2,x3>=0; where x1,x2 and x3 are the number of product 1,2 and 3 produced. (i) (ii) (iii) (iv) (v) 333 (vi) Identify the initial basis with your reason. Show one complete iteration as the solution moves to the next basis. Find the optimal basis. You may solve the problem for the optimal solution using the Lingo software but must validate the optimal basis. Estimate the optimal simplex multipliers. Solve the model using the Lingo software and report the dual prices for each constraint. Compare the optimal simplex multipliers with the shadow prices for different constraints and provide your comments.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to...

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