Assignment 4

BUS404 Management Science

Assignment #4: Graphical Method for LPs Question

Below is the formulation of a two variable linear program:

Max 45X + 30Y Subject to: Constraint #1 3X + 1.5Y ≤ 400 Constraint #2 4X + 3Y ≤ 600 Constraint #3 X ≥ 20 Constraint #4 Y ≥ 25 Constraint #5 3X + 4Y ≤ 720

a. Find the optimal decision and its objective function value. b. Which constraints are binding, which are non-binding, and what are their slacks/surpluses? c. What are the allowable increase and decrease of the coefficient of X in the objective function? d. Pick a binding constraint. Determine the shadow price and its allowable increase and decrease.