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Suffolk Manufacturing produces three types of paneling from Pine and Spruce. The

ID: 357018 • Letter: S

Question

Suffolk Manufacturing produces three types of paneling from Pine and Spruce. The types of paneling are Western (X1), Old English (X2), and Colonial (X3). Each sheet must be cut and pressed. The resource requirements are given in the following linear programming formulation.

a. What is the marginal value of an additional pound of spruce? Over what range is this value valid?

b. What is the marginal value of an additional hour of cutting? Over what range is this value valid?

Maximize Z = 4X1 + 10X2 + 8X3     (profit, $)

Variable               Value    Reduced Cost    Original Val        Lower Bound     Upper Bound

X1                           0              2                              4                              -Infinity                 6

X2                           10           0                              10                           4                              16

X3                           20           0                              8                              5                              20

Constraint           Dual Value          Slack/Surplus    Original Val        Lower Bound     Upper Bound

Pine                       0                              80                           200                         120                         Infinity

Spruce                 0                              70                           160                         90                           Infinity

Cutting                 2                              0                              50                           20                           80

Pressing               2                              0                              80                           50                           132.5

Explanation / Answer

a) Spruce ---> Marginal Value = Slack/Surplus = 70 per unit. Valid for 90 to Infinity

b) Cutting ---> Marginal Value = Slack/Surplus = 0 per unit. Valid for 20 to 80

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