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Could someone please illustrate how the objective function value would modify when the right hand side value changes? For maximization problems: For the positive shadow price, an raise in the R.H. side would raise the objective function value which is good; a reduce in the R.H. side would reduce the objective function value which is bad For the negative shadow price, an raise in R.H. side would reduce the objective function value which is bad; a reduce in the R.H side value would raise the objective function value which is good? Is this the same for minimization problems? Positive shadow price - raise R.H. side would raise the objective function value ->bad; reducing the R.H. side would reduce the objective function value -> good. Negative shadow price – raising the R.H. side would reduce the objective function value -> good; reducing the R.H side would raise the objective function value -> good.

Operation Management, Management Studies

  • Category:- Operation Management
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