Linear programming problem-decision variables

Assignment Help Business Economics

Reference no: EM131115332

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

Questions Cloud

What are the ethical issues involved : Who are the stakeholders in this situation? What are the ethical issues involved?

Will the investor be better or worse off at maturity : Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF 1,000 of par value. It sells at par. What is the implicit SF/$ exchange rate at maturity? Will the investor be better or worse off at maturity if the..

Accounting for research and development costs cuevas : In accordance with GAAP, how the various costs of Cuevas described above should be recorded on the financial statements for the year ended December 31, 2010?(AICPA adapted)

Present value of this stream of income is positive : Suppose you are deciding whether to install rooftop solar panels on your house. The immediate installation cost is $1100. A year from now, you will start collecting annual benefits equal to $300 per year. After collecting these benefits for 4 years, ..

Linear programming problem-decision variables : What is a shadow price and how can business managers use it to make decisions? 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 const..

What is the amount of the first coupon payment : Your firm has just issued five-year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4 percent. What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 7.2 perc..

What will be the company gross revenue in this venture : A monopoly's demand curve is P = 200 – 3Q and its MC = $15. How many customers should this company serve? What is the price paid by each customer? What will be the company’s gross revenue in this venture?

Resulted in global stagflation : The accepted wisdom is that the oil price hikes of the 1970s resulted in global stagflation. It would seem to follow that the drop in oil prices would have the opposite effect on the US economy. Did it or didn’t it? If not, why not? Make sure to look..

What should a borrower consider before issuing dual currency : What should a borrower consider before issuing dual-currency bonds? What should an investor consider before investing in dual-currency bonds?

User Account

All Pages