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The company "Dual-Best" producing paper has you solve an LP problem, the objective being measured in dollars of pro?t

Math Feb 01, 2023

The company "Dual-Best" producing paper has you solve an LP problem, the objective being measured in dollars of pro?t. Yon solve the primal LP problem, arriving at a ?nal and optimal dictionary that is non-degenerate. And you also solved the dual problem. Clmently they are getting 1000000 kilograms of pulp ingredients per day from the contractor "Pulp-good" at the price $1 per kilogram. In your dual optimal solution 17', the component, say, y: that corresponds to the constraint of pulp 5 1000000 kg, is found to he y; = 10. In below (a) and (h) are independent questions. (a) Suppose a neighbouring company "Neighbor" started a new business and needs some small amount of pulp, say, 10 kg per day, and wants the company "Dual- Best" to resell the pulp to them, at the price $10 per kilogram. Would you advise the company "Dual—Best" to agree on reselling its pulp to the company "Neighbor"? Justify your decision. Explain your answer clearly using relevant theorems. (b) The company I'lIlIuaI-best" wants to increase their production for more pro?t. Assuming that the contractor "Pulp-good" provides more pulp at the same price. If the company would like to produce more paper by using 2 additional kilograms of pulp per day. How much moi-ease in the pro?t (per day) the company would expect, assuming all other conditions are the same? Explain your answer clearly using relevant theorems.

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