LINDO Output Is Given for the Following Linear Programming Problem

question 22

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:

Horizontal Conflict

Horizontal conflict occurs between entities at the same level in a distribution channel, such as two retailers or two wholesalers, often arising from competition for the same customer base or market share.

Goodyear Tire

An American multinational tire manufacturing company known for producing a wide range of tires for vehicles, commercial trucks, and airplanes.

Independent Dealers

Businesses or individuals that sell products or services without being directly affiliated with a single manufacturer or supplier.

Channel Captain

Channel Captain refers to a dominant firm that controls the behavior of other firms in a distribution channel, often determining terms and conditions of sale.