Question

beer, pizza, coffee. distsoda, sandwich Fil Reduced Objective Allowable Allowable Cell N SC$5 beer SDS5 SESS coffee SES5 diet

9 c

10 c

11 b

12 b

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Answer #1

9.

Reduced cost, or opportunity cost, is the amount by which an objective function coefficient would have to improve (so increase for maximization problem, decrease for minimization problem) before it would be possible for a corresponding variable to assume a positive value in the optimal solution.

The price at which Fred would consider buying Coffee < Objective Coefficient - Reduced cost = 0.95 - 0.19 = 0.76

Thus,  The price at which Fred would consider buying Coffee < 0.76

So, the highest price should be 0.75

10.

Allowable decrease for Fat is 5.55. So, if the fat is reduceed to any value between 55 to 55 - 5.55 (= 49.45), the total expense will be affected by Shadow Price * Decrease.

Since 50 grams lies between the range (49.45, 55), the total expense will increase by -0.01 * (50 - 55) =  0.05

Thus, the total expense will increase by 0.05 gm

11.

Allowable increase for Sandwich is 1E+30 (which is infinity). Thus, is the sandwich value increases to any value, the optimal solution will remain same but objective function value will increase as the objective function coefficient of Sandwich is increasing.

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