Linear programming problem-decision variables

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1. What is a shadow price and how can business managers use it to make decisions?

2. Formulate and write out the following linear programming problem. You do not need to solve this just specify the objective function, decision variables, and relevant constraints. A company makes three wood products (Western, English and American) using two different woods – oak and ash. Each product must be measured and cut. The profits per unit of the three products are $5, $12, and $10 respectively. There are 600 units of oak and 350 units of ash available to make the products. Western takes 4 units of oak and 1 unit of ash, English takes 6 units of oak and 5 units of ash, and American takes 3 units of oak and 3 units of ash. The company has 90 hours of measuring labor available and each product takes 1.5 hours to measure. Cutting labor availability is 110 hours; Western takes 1 hour to cut, English 1.5 hours, and American 1.25 hours to cut.

Reference no: EM131115332

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