Question: Consider the following linear program.

Min z =15x1 + 15x2 + 16x3

Subject to:

1x1 + 1x3≤ 30

0.5x1 –1x2 + 6x3 ≥ 15

3x1 + 4x2 ­ 1x3 ≥ 20

x1, x2, x3 ≥ 0

Solve the problem using Excel Solver.

a) What is the optimal solution, and what is the value of the objective function?

b) Which constraints are binding?

c) What are the shadow prices? Interpret each.

d) If you could change the right-hand side of one constraint by one unit, which one would you choose? What would be the new value of the right-hand side?