Scribd
Upload
34 views6 pages

Shadow Price: A Is The Change in Value of The Objective Function From An Increase of One Unit of A Scarce Resource

The document discusses several key concepts in linear programming: 1) A shadow price is the change in the objective function from increasing a scarce resource by one unit. 2) Infeasibility occurs when there is no solution that satisfies all constraints. An infeasible solution has an artificial variable still in the solution. 3) Unboundedness describes problems without finite solutions, occurring in maximization problems when a variable can grow infinitely without violating constraints.

Uploaded by

Sanjit Prasad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
34 views6 pages

Shadow Price: A Is The Change in Value of The Objective Function From An Increase of One Unit of A Scarce Resource

The document discusses several key concepts in linear programming: 1) A shadow price is the change in the objective function from increasing a scarce resource by one unit. 2) Infeasibility occurs when there is no solution that satisfies all constraints. An infeasible solution has an artificial variable still in the solution. 3) Unboundedness describes problems without finite solutions, occurring in maximization problems when a variable can grow infinitely without violating constraints.

Uploaded by

Sanjit Prasad
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 6

A shadow price is the change in value of the objective

function from an increase of one unit of a scarce resource


Infeasibility

• Infeasibility comes about when there is no solution that


satisfies all of the problem’s constraints
• In the simplex method, an infeasible solution is indicated
by looking at the final tableau
• All Cj - Zj row entries will be of the proper sign to imply
optimality, but an artificial variable will still be in the
solution mix
• A situation with no feasible solution may exist if the
problem was formulated improperly
Unbounded Solutions

• Unboundedness describes linear programs that do not


have finite solutions
• It occurs in maximization problems when a solution
variable can be made infinitely large without violating a
constraint
• In the simplex method this will be discovered prior to
reaching the final tableau
• It will be manifested when trying to decide which variable
to remove from the solution mix
• If all the ratios turn out to be negative or undefined, it
indicates that the problem is unbounded
Degeneracy
• Degeneracy develops when three constraints pass through a
single point
• For example, suppose a problem has only these three
constraints X1 ≤ 10, X2 ≤ 10, and X1 + X2 < 20
• All three constraint lines will pass through the point (10, 10)
• Degeneracy is first recognized when the ratio calculations
are made
• If there is a tie for the smallest ratio, this is a signal that
degeneracy exists
• As a result of this, when the next tableau is developed, one
of the variables in the solution mix will have a value of zero
The Dual

• Every LP problem has another LP problem associated with it


called the dual
• The first way of stating a problem (what we have done so far)
is called the primal
• The second way of stating it is called the dual
• The solutions to the primal and dual are equivalent, but they
are derived through alternative procedures
• The dual contains economic information useful to managers
and may be easier to formulate
Karmakar’s Algorithm
• In 1984, Narendra Karmakar developed a new method of
solving linear programming problems called the Karmakar
algorithm
• The simplex method follows a path of points on the
outside edge of feasible space
• Karmakar’s algorithm works by following a path a points
inside the feasible space
• It is much more efficient than the simplex method
requiring less computer time to solve problems
• It can also handle extremely large problems allowing
organizations to solve previously unsolvable problems

You might also like