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Linear Programming Concepts, shadow price and sensitivity
What does the shadow price reflect in a maximization problem? explain.
How do the graphical and computer-based methods of solving LP problems differ? In what ways are they the same? Under what circumstances would you prefer to use the graphical approach? How does sensitivity analysis affect the decision making process? How could it be used by managers?
Solution Summary
This solution discusses the concepts of shadow price and maximization problem, differences between graphical and computer-based methods of solving LP problems differ, and sensitivity analysis in decision making process.
Show the three options given above. Include in your discussion the issues involved and the advantages and disadvantages of each. Which do you consider would be the most beneficial to Eastrex and DSV?
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