FIGURE 3.14 THE SOLUTION FOR THE INVESTMENT ADVISORS PROBLEM Optimal Objective Value = 8400.00000 Variable Value Reduced Cost U 800.00000 0.00000 H 1200.00000 0.00000 Constraint Slack/Surplus Dual Value 1 0.00000 0.09333 0.00000 1.33333 3. 200.00000 0.00000 Objective Allowable Allowable Variable Coefficient Increase Decrease -- U 3.00000 7.00000 0.50000 H 5.00000 1.00000 3.50000 RHS Allowable Allowable Constraint Value Increase Decrease 1 80000.00000 60000.00000 15000.00000 2 700.00000 75.00000 300.00000 3 1000.00000 Infinite 200.00000 The computer solution of this problem is shown in Figure 3.14. a. What is the optimal solution, and what is the value of the total annual return? b. Which constraints are binding? What is your interpretation of these constraints in terms of the problem? What are the dual values for the constraints? Interpret each. d. Would it be beneficial to increase the maximum amount invested in U.S. Oil? Why or c. why not?
FIGURE 3.14 THE SOLUTION FOR THE INVESTMENT ADVISORS PROBLEM Optimal Objective Value = 8400.00000 Variable Value Reduced Cost U 800.00000 0.00000 H 1200.00000 0.00000 Constraint Slack/Surplus Dual Value 1 0.00000 0.09333 0.00000 1.33333 3. 200.00000 0.00000 Objective Allowable Allowable Variable Coefficient Increase Decrease -- U 3.00000 7.00000 0.50000 H 5.00000 1.00000 3.50000 RHS Allowable Allowable Constraint Value Increase Decrease 1 80000.00000 60000.00000 15000.00000 2 700.00000 75.00000 300.00000 3 1000.00000 Infinite 200.00000 The computer solution of this problem is shown in Figure 3.14. a. What is the optimal solution, and what is the value of the total annual return? b. Which constraints are binding? What is your interpretation of these constraints in terms of the problem? What are the dual values for the constraints? Interpret each. d. Would it be beneficial to increase the maximum amount invested in U.S. Oil? Why or c. why not?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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