Use the Following Management Scientist Output to Answer the Questions

question 12

Essay

Use the following Management Scientist output to answer the questions.
MIN 4X1+5X2+6X3
S.T.
1)X1+X2+X3<85
2)3X1+4X2+2X3>280
3)2X1+4X2+4X3>320
Objective Function Value = 400.000
OBJECTIVE COEFFICIENT RANGES
RIGHT HAND SIDE RANGES

a.What is the optimal solution,and what is the value of the profit contribution?
b.Which constraints are binding?
c.What are the dual prices for each resource? Interpret.
d.Compute and interpret the ranges of optimality.
e.Compute and interpret the ranges of feasibility.

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Definitions:

Bond

A fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental.

Zero-Coupon Bond

A bond paying no coupons that sells at a discount and provides only payment of face value at maturity.

Discount Rate

The interest rate used to discount future cash flows to their present values, often used in investment appraisal and risk assessment.

Duration

The measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often expressed in years.