Optimal system design: Towards new interpretation of shadow prices in linear programming
type: Item
instance of: scholarly article
title: Optimal system design: Towards new interpretation of shadow prices in linear programming
zbMATH Open document ID: 0614.90066
DOI: 10.1016/0305-0548(87)90063-3
author: Milan Zeleny
author: Marek P. Hessel
published in: Computers \& Operations Research
publication date: 1987-01-01T00:00:00Z
review text: We start with the concept of an optimally designed product-mix system and formulate the corresponding duality theory. We show that although the system is degenerate, the optimality of design ''overcomes'' its own degeneracy and allows unique valuation of all resources. This valuation rests on the reinterpretation of the shadow prices in optimally designed systems: it requires separating the resource-valuation function of a dual variable from its resource-pricing function.
Mathematics Subject Classification ID: 90B99
Mathematics Subject Classification ID: 91B99
Mathematics Subject Classification ID: 90C05
zbMATH DE Number: 3995444
zbMATH Keywords: optimally designed product-mix system
zbMATH Keywords: duality theory
zbMATH Keywords: shadow prices
MaRDI profile type: Publication
full work available at URL: 0305-0548(87)90063-3
OpenAlex ID: W2008774431
cites work: Valuation of Resources
cites work: An external reconstruction approach (ERA) to linear programming
description: scientific article; zbMATH DE number 3995444