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Linear Programming – Higgins Co (June )8 Exam – Adapted)

This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.

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May 10, 2012 at 8:23 pm #52589
yannickacca
Member
- Topics: 3
- Replies: 1
Hi,
Can you please explain to me how the shadow price of Ash is calculated please?
I know how to calculate shadow price perfectly,but i can’t understand the correction of the examiner cause one additional has not been added to the equation.
I.E when solving simultaneously the equation i cannot see 1 added to ash Equation to obtained the new contribution.
Thanking you for you help before hand,
May 14, 2012 at 5:46 pm #97406
John Moffat
Keymaster
- Topics: 57
- Replies: 54660
At the optimum point, we are not using all of the Ash currently available (the optimum point is below the Ash line).
Therefore there we do not wish to purchase any more Ash and therefore the shadow price is zero..
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