(a) Model the problem of maximizing next months profit as a linear program and solve it. Report both your LP and optimal solution in your submission. (b) Find the Shadow Price of each of the three processes as they relate to your optimal solution and report them here. Describe how you found the prices and identify the units for each price. (c) Management is considering hiring some extra inspection time, but the union requires that inspectors are paid $12 per hour. Will it be profitable to hire another man-hour of inspection capacit at a price of 12 dollars? How do you know? (d) At what price would should be willing to rent 1 machine-hour of vibration to a competing producer? How many machine-hours can be rented out before your optimal solution changes.

(a) Model the problem of maximizing next months profit as a linear program and solve it. Report both your LP and optimal solution in your submission. (b) Find the Shadow Price of each of the three processes as they relate to your optimal solution and report them here. Describe how you found the prices and identify the units for each price. (c) Management is considering hiring some extra inspection time, but the union requires that inspectors are paid $12 per hour. Will it be profitable to hire another man-hour of inspection capacit at a price of 12 dollars? How do you know? (d) At what price would should be willing to rent 1 machine-hour of vibration to a competing producer? How many machine-hours can be rented out before your optimal solution changes.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 14P

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