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Max is 80X+120Y

Optimum Solution is 16,10

Optimum Profit 80(16)+120(10) =2480

Inspection: Final Value is 108, Shadow Price is 15.5555556, Constraint R.H.S is 108, Allowable Increase is 72, Allowable Decrease is 36

Assembly: Final Value is 120, Shadow Price is 6.66666667, Constraint R.H.S is 120, Allowable Increase is 60, Allowable Decrease is 48

You have a profit reduction of $1920, what is the new available hours for this constraint - new R.H.S.? (original R.H.S is 108, 120)

User Loek
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Final answer:

The new available hours for the constraint with an original R.H.S of 108, after a profit reduction of $1920 and with a Shadow Price of 15.5555556, cannot be practically calculated as it results in a negative value, which implies that the constraints need to be reevaluated.

Step-by-step explanation:

The question deals with the concept of linear programming in the context of business and operations research, specifically the changes in the right-hand side (R.H.S) values of constraints when a profit reduction occurs. Given a profit reduction of $1920 and the original R.H.S of the constraints being 108 and 120, we need to determine the new R.H.S. To do this, one must understand the effect of the 'Shadow Price' on the constraint's R.H.S value. The Shadow Price indicates how much the objective functions' value (profit in this case) will change with a unit increase in the R.H.S of a constraint. According to the provided information, the 'Inspection' constraint has a Shadow Price of 15.5555556. The profit has been reduced by $1920, so we divide the profit reduction by the Shadow Price to find the change in hours, which gives us:1920 / 15.5555556 ≈ 123.5 hours Since we want to find the reduction in hours, we subtract this value from the original R.H.S of 108 hours:108 - 123.5 ≈ -15.5As the result cannot be negative in practical situations, it suggests that the new R.H.S should be 0, but this would mean that the constraint is no longer binding or the situation demands a reevaluation of the constraint, as the profit cannot be reduced by $1920 without breaking existing constraints.Conclusion Based on the given Shadow Price and the amount of profit reduction, the inspection constraint would theoretically require a reduction of hours that would make the new R.H.S negative, which is impractical. The situation indicates a need to reassess the constraints and their relationship with the profitability of the operations.

User Ozzotto
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