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Assignment Saurabh 223
Assignment Saurabh 223
Assignment - 2
The Non-binding constraint is “Plant B Production Quantity”, there will not be economic
benefit involved in relaxing Non-binding constraint.
Binding constraints are 1 and 3.
Shadow prices associated with this are 0.25 and 0.75 for Plant A and Plant C respectively,
cost associated with Plant A Production Quantity is less it would be better to install additional
line in plant-C.
The complete formulation is:
(Min) 3000 P1 + 3300 P2 + 3600 P3 + 3600 P4 + 255 I1 + 255 I2 + 255 I3 + 255 I4 +
110 U1 + 110 U2 + 110 U3 + 110 U4 + 90 D1 + 90 D2 + 90 D3 + 90 D4
subject to: