The Following Questions Are Based on the Problem Below and Accompanying

question 68

Essay

The following questions are based on the problem below and accompanying Risk Solver Platform (RSP) sensitivity report.
Carlton construction is supplying building materials for a new mall construction project in Kansas. Their contract calls for a total of 250,000 tons of material to be delivered over a three-week period. Carlton's supply depot has access to three modes of transportation: a trucking fleet, railway delivery, and air cargo transport. Their contract calls for 120,000 tons delivered by the end of week one, 80% of the total delivered by the end of week two, and the entire amount delivered by the end of week three. Contracts in place with the transportation companies call for at least 45% of the total delivered be delivered by trucking, at least 40% of the total delivered be delivered by railway, and up to 15% of the total delivered be delivered by air cargo. Unfortunately, competing demands limit the availability of each mode of transportation each of the three weeks to the following levels (all in thousands of tons):
The following is the LP model for this logistics problem.

-Refer to Exhibit 4.1. The Week 1 by Truck and Week 1 by Rail constraints each have a shadow price of -360. What do these values imply?

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Definitions:

Disrupted Habits

Patterns of behavior that have been interrupted or altered, often due to changes in the environment, technology, or personal circumstances, leading individuals to adapt or develop new routines.

Poor Timing

The action or decision taken at an inappropriate time, potentially leading to less effective outcomes or failure.

Binding Price Floors

Binding price floors are minimum prices set by the government for certain goods or services that are above the equilibrium price, leading to surpluses.

Sellers

Persons or organizations that provide products or services to buyers or other commercial entities.