The Discussion Between The New Model Of Linear Programming And The Shadow Price

Shadow price is an estimate to the present resources from which the maximum interest comes. According to the shadow price, an enterprise will be able to make its own reasonable decisions; If the price of renting (market price) is higher than the shadow, it is to be considered to rent these equipments (or sell the resource); on the other hand, it will be considered to purchase them to enlarge the productivity.To find the solution to original problem of linear programming is to ascertain the best distribution plan, that is how much resource is needed to produce certain productivity, and to find the solution to problem of couple is to make the reasonable estimate of the price to the resource. The shadow price is directly related to the efficiency of the usage of the resource, it reflects the relationship between the general economic efficiency with the increasing or decreasing of some factor. If the productivity will be enlarged, it is needed to update some equipments or resources, it is the first thing to get the equipment or resource with higher shadow price so as to get higher general interest with less money.If the shadow price is used to act as inner settlement price for an enterprise, it will be good for controlling the usage of the resource, saving the resource and promoting the management efficiency.The shadow price of linear programming is introduced in the first part, and a profound discussion is made to the shadow price.A new model is created for the premium production of an enterprise in the second part,and some conclusion on shadow price of the new model is also drawn out. And more,the relationship of shadow price between the new model and the classical one.The practical examples of the shadow price is included in the third part.