When mathematicians are presented with a linear programming problem, they will not only determine the optimal solution but will also supply what are called shadow prices for each resource. This chapter project develops the concept of a shadow price.
Consider the furniture manufacturing problem. The constraint for finishing is
Return to the original furniture manufacturing problem, and assume that one additional hour is available for carpentry. Solve the altered problem, and determine the shadow price for the carpentry resource.
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Finite Mathematics & Its Applications Plus Mylab Math With Pearson Etext -- Access Card Package (12th Edition)
- College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning