In: Statistics and Probability
JOBCO produces two products on two machines. A unit of product 1 requires 2 hours on machine 1 and 1 hour on machine 2. For product 2, a unit requires 1 hour on machine 1 and 3 hours on machine 2. The revenues per unit of products 1 and 2 are $30 and $20, respectively. The total daily processing time available for each machine is 8 hours. Letting x1 and x2 represent the daily number of units of products 1 and 2, respectively, the LP model is given as
max z=30x1+20x2
s.t.
2x1+x2 ≤8
x1+3x2 ≤8
x1,x2 ≥ 0
equation to be solved using simplex method.
If JOBCO can increase the capacity of both machines, which machine should receive higher priority?
I need it to be solved in details using shadow price and delta in the right hand side.