Price may vary.

unit of the constraint or another constraint is added, the Shadow

ONE additional unit of the selected constraint.  If more than one

It is important to note that the Shadow Price holds true only for



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   2)  Choose "Shadow Price" from the Optimization Menu.



   1)  Select the appropriate CONSTRAINT cell.



To find the Shadow Price:

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unit will have no effect on the value of the objective formula.

that the constraint is "nonbinding" on the resource and an additional

If the Shadow Price is zero for a particular constraint, this means



each added hour of labor would be worth.

cost, the Shadow Price could help answer the question of how much

be gained.  Similiarly, if the constrained resource were a labor

Shadow Price would indicate that an additional 14¢ of profit would

obtain one more unit of Pork in the Product Mix example, the

tional profit from your situation.  For example, if you were to

The Shadow Price is useful for determining ways to squeeze addi-

 

OBJECTIVE formula.  This value is called the "Shadow Price". 

additional unit of a constrained resource would have on the

After OPTIMIZATION you may determine how much impact ONE