# Solve the following problem using the simplex method:

(a) Solve the following problem using the simplex method: b) Verify your solution by solving graphically and relate tableaux to specific corner points.
c) Determine the shadow prices and interpret their meaning.  Stop the iteration here since the z function row has no more negative coefficients.
Solution. x2 = 16.65 meaning produce 16.65 units of x2.
s2 = 63.29 meaning amount of slack for resources 2.
x1 = 0 meaning do not produce x1.
s1 = 0 meaning resource 1 is used up. The various corner points in relation to the tables are indicated on the graph.
I (0,0), II(7.5,0), III(8.63,2.27) and IV(0,16.65)
c) Shadow prices for the problem are
If one unit of resource 1 is added then the z function will increase by 19/11.That
means we can pay up to 19/11 to add resource 1.
If we produce any unit of x1 then profit will reduce by 2 units.
raphael answered the question on January 11, 2019 at 05:05

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