IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v11y1977i3p199-222.html
   My bibliography  Save this article

Determining All Nondegenerate Shadow Prices for the Transportation Problem

Author

Listed:
  • C. O. Fong

    (University of Malaya, Kuala Lumpur, Malaysia)

  • V. Srinivasan

    (Stanford University, Stanford, California)

Abstract

Shadow prices derived from the optimal dual solution of a transportation problem give the rate at which the optimal cost changes when a warehouse capacity or market requirement is changed ceteris paribus. One of the limitations in interpreting shadow prices for managerial use is that they may be degenerate, i.e., their interpretation may be valid only over a zero range of the parameter to be varied. This paper provides an efficient procedure for computing all nondegenerate (or “real”) shadow prices. The method involves breaking the optimal basis tree into subtrees by dropping basic variables which are at their bounds, defining a measure of distance between the subtrees and solving a shortest path problem between all pairs of subtrees.

Suggested Citation

  • C. O. Fong & V. Srinivasan, 1977. "Determining All Nondegenerate Shadow Prices for the Transportation Problem," Transportation Science, INFORMS, vol. 11(3), pages 199-222, August.
    • Handle: RePEc:inm:ortrsc:v:11:y:1977:i:3:p:199-222
    DOI: 10.1287/trsc.11.3.199
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.11.3.199
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.11.3.199?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Balaji Gopalakrishnan & Seunghyun Kong & Earl Barnes & Ellis Johnson & Joel Sokol, 2011. "A least-squares minimum-cost network flow algorithm," Annals of Operations Research, Springer, vol. 186(1), pages 119-140, June.
    2. Lin, Chi-Jen & Wen, Ue-Pyng, 2003. "Sensitivity analysis of the optimal assignment," European Journal of Operational Research, Elsevier, vol. 149(1), pages 35-46, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:11:y:1977:i:3:p:199-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.