Wednesday, 30 March 2016

Shadow prices and changes in the R.H. side.

22:39

Share it Please

Shadow prices and changes in the R.H. side.


 how the objective function value would change when the right hand side value changes. For maximization questions: For a positive shadow price, an increase in the R.H. side would increase the objective function value which is good; a decrease in the R.H. side would decrease the objective function value which is bad For a negative shadow price, an increase in the R.H. side would decrease the objective function value which is bad; a decrease in the R.H side value would increase the objective function value which is good? Is this the same for minimization problems? Positive shadow price - increase R.H. side would increase the objective function value -> bad; decreasing the R.H. side would decrease the objective function value -> good. Negative shadow price - increasing the R.H. side would decrease the objective function value -> good; decreasing the R.H side would increase the objective function value

0 comments:

Post a Comment