Linear Programming Concepts, shadow price and sensitivity

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?

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Linear programming/Sensitivity Analysis

What does the shadow price reflect in a maximization problem? explain.

In the context of a maximization problem with a constraint, the shadow price on the constrain is the amount that the objective function of the maximization would increase by if the constraint were relaxed by one unit (Econterms, 2012).

The concept is briefly described as "a shadow price is the maximum price that management is willing to pay for an extra unit of a given limited resource. For example, if a production line is already operating at its maximum 40 hour limit, the shadow price would be the maximum price the manager would be willing to pay for operating it for an additional hour, based on the benefits he would get from this change" (Answers.com, 2012).

Other references would show that "the value of the shadow price can provide decision makers powerful insight into problems. For instance if you have a constraint that limits the amount of labor available to 40 hours per week, the shadow price will tell you how much you would be willing to pay for an additional hour of labor. If your shadow price is $10 for the labor constraint, for instance, you should pay no more than $10 an hour for additional labor. Labor costs of less than $10/hour will increase the objective value; labor costs of more than $10/hour will decrease the objective value. Labor ...

Solution Summary

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.

PLEASE EXPLAIN YOUR ANSWERS (why you choose A instead of C, etc.).
C 6. For a resource constraint, either its slack value must be _____ or its shadowprice must be ________
a. negative, negative
b. negative, zero
c. zero, zero
d. zero, negative
D 7. For a linearprogramming problem, assume that a given

Solve the linearprogramming model developed in Problem 22 for the Burger Doodle restaurant by using the computer. a. Identify and explain the shadowprices for each of the resource constraints. b. Which of the resources constraints profit the most? c. Identify the sensitivity ranges for the profit of a sausage biscuit and the a

TRUE/FALSE
1. A linearprogramming model consists of decision variables, constraints, but no objective function.
2. In a linearprogramming model, the number of constraints must be less than the number of decision variables.
3. The values of decision variables are continuous or divisible.
4. All linearprogramming mo

This is a problem related to linearprogrammingandsensitivity analysis.
Please solve this and explain how you arrived at the solution.
Please do this in Excel by using "Solver" or management science software...which ever is convinient for you.
The problem is attached.
Thank you.

Below is the computer solution to a linearprogramming problem linearprogramming:
For the above information, answer the following:
a) What are the objective function and the constraints?
b) What are the values of the variables at optimality and what is the value of the objective function at optimality?
c) If ther

Bradley Family
(a) Let X1 = # of acres of corn and X2 = # of acres of tobacco
Corn Tobacco Resources Available
300 520
Land 1 1 <= 410
Budget 105 210 <= 52500
Govt. Restriction 0 1 <= 100 Government Restriction
X1 X2
Decisio

The production manager for Beer etc. produces 2 kinds of beer: light (L) and dark (D). Two resources used to produce beer are malt and wheat. He can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week respectively. Each bottle of light beer requires 16 oz of malt and 4 oz of wheat, while a bottle of dar

Solve linearprogramming problem. See the attached document for proper formatting.
Week 7
Hartley's makes furniture. The time required for each item is listed below.
Find the mix of products andsensitivity report to make the highest profit for Harley's.
Chairs Tables Bookcases Available
Assemb

This must all be done in Excel. (Very Important) I have also put a link of an example problem for the first part. This how I would like it formatted. Please take a look at it for reference.
http://documents.saintleo.edu/docs/AVP/MBA550/MBA550_ch9.mp4
The manager of a Burger Doodle franchise wants to determine how many sa