Suppose that the shadow price for assembly time is $5/hour. The allowable increase for the assembly time constraint is 40 hours, and the allowable decrease is 30 hours. If all assembly hours were used under the initial LP solution and workers normally make $4/hour but can work overtime for $6/hour, what should management do?
A) do not change available hours for assembly time
B) decrease available hours for assembly time by 30 hours
C) increase available hours for assembly time by 40 hours
D) decrease available hours for assembly time by 5 hours
E) increase available hours for assembly time by 5 hours

Question

Quizplus · Accepted Answer

The Answer of Suppose that the shadow price for assembly time is $5/hour. The allowable increase for the assembly time constraint is 40 hours, and the allowable decrease is 30 hours. If all assembly hours were used under the initial LP solution and workers normally make $4/hour but can work overtime for $6/hour, what should management do?
A) do not change available hours for assembly time
B) decrease available hours for assembly time by 30 hours
C) increase available hours for assembly time by 40 hours
D) decrease available hours for assembly time by 5 hours
E) increase available hours for assembly time by 5 hours

Suppose That the Shadow Price for Assembly Time Is $5/hour