The company must determine how many storage rooms of each size to build,. The problem formulated as linear progrram (LP), as follows: maximize Z=40 X1 + 30 X2, subject to 2 X1 + 4 X2 <=200, 100 X1 + 50 X2 <= 4000, X1 <= 35, X1 & X2 => 0
Graph all the constraints and identify the feasible region fro this LP.
1. What is the optimal soulution for this problem, what the optimal x1 and x2 values and the corresponding earning level?
2. Briefly explain how you would determine the dual price of the advertising budget constraint.
3. If the rental limit constraint is decrease from 35 to 23, by how much will the monthly earnings change?
4. Several assumptino must implicitly be made to formulate and solve this problem using a linear program. Identify at least one LP assumption which is violated in this context which may not be appropriate when the decision variables relate to the number of storage units develop.