Interpret this sensitivity report for the constraints

Question

Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$15 One 45 1 45 1.666666667 45
$E$16 Two 54 0 56 1E+30 2
$E$17 Three 27 0 67 1E+30 40
$E$18 Four 72 0 78 1E+30 6

Answer 1

Answer: Constraint One is the only binding constraint; it has a shadow price of 1, meaning that if the RHS increased by 1, the optimal value of the objectgive function would rise by 1. This works in the very limited range up to 46.6666667. If the RHS dropped by 1, the objective function value would drop by 1 all the way down to a RHS equal to 0. The other constraints have slack; if constraint Two's RHS drops by 2 or more, the optimal answer would change. Constraint Four would become binding if the RHS was 72 or lower and constraint Three enters the picture if the RHS drops to 27 or lower. For the moment, any increase in the RHS for Two, Three or Four would have no impact on the optimal answer.