What does the shadow price reflect in a maximization problem? explain.
How do the graphical and computer-based methods of solving LP problems differ? In what ways are they the same? Under what circumstances would you prefer to use the graphical approach? How does sensitivity analysis affect the decision making process? How could it be used by managers?
This solution discusses the concepts of shadow price and maximization problem, differences between graphical and computer-based methods of solving LP problems differ, and sensitivity analysis in decision making process.