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Mathematics, 18.04.2020 01:20 dyhji

Here is a problem to challenge your intuition. In the original GrandPrix example, reduce the capacity of plant 2 to 300. Then the total capacity is equal to the total demand. Re-optimize the model. You should find that the optimal solution uses all capacity and exactly meets all demands with a total cost of $176,050. Now increase the capacity of plant 1 and the demand at region 2 by 1 automobile each, and optimize again. What happens to the optimal total cost? How can you explain this "more for less" paradox?

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