Toward Proper Modeling Common Errors - Improper Substitution Formulation 6.8(a) Leontief Isoquant problem no substitution of labor. – – Regular Overtime Production labor labor Objective -10 -15 220 Chairs -1 1 0 ≤ Regular 7 -1 77 ≤ Overtime Labor 3 -1 27 ≤ Formulation 6.8(b) Perfect substitution of labor. – Chair Regular Overtime Production labor Chair Objective -10 -15 220 Chairs -1 1 0 ≤ Labor 10 -1 -1 0 ≤
Toward Proper Modeling Common Errors - Improper Substitution Formulation 6.8(a) – Leontief Isoquant problem – no substitution of labor. Production Regular labor Overtime labor Objective -10 -15 220 Chairs -1 1 ≤ 0 Regular 7 -1 ≤ 77 Overtime Labor 3 -1 ≤ 27 Formulation 6.8(b) – Perfect substitution of labor. Chair Production Regular labor Overtime Chair Objective -10 -15 220 Chairs -1 1 ≤ 0 Labor 10 -1 -1 ≤ 0
chapter06over.docx