LINDO Output Is Given for the Following Linear Programming Problem

question 29

Essay

LINDO output is given for the following linear programming problem.
MIN 12 X1 + 10 X2 + 9 X3
SUBJECT TO
2) 5 X1 + 8 X2 + 5 X3 >= 60
3) 8 X1 + 10 X2 + 5 X3 >= 80
END
LP OPTIMUM FOUND AT STEP 1
OBJECTIVE FUNCTION VALUE
1) 80.000000 NO. ITERATIONS= 1
RANGES IN WHICH THE BASIS IS UNCHANGED:
a.What is the solution to the problem?
b.Which constraints are binding?
c.Interpret the reduced cost for x₁.
d.Interpret the dual price for constraint 2.
e.What would happen if the cost of x₁ dropped to 10 and the cost of x₂ increased to 12?

---

Definitions:

Inventory

A complete list or stock of goods and materials held by a business to meet customer demand.

Tangible Assets

Assets that have a physical form such as property, plant, and equipment.

Past Earnings

The historical profits or net income that a company has generated over a specific period, often used as an indicator of financial health and operational success.

Future Earnings

The projected income a company or individual is expected to generate over a future period.