Reduced cost
When one solves problems of optimization, one obtains an optimal solution (or not). Each Forced S.A. values precise. The reduced cost is the loss of money if the constraint is lowered. Thus, an unsaturated constraint has a cost reduced no one. Let us take an example: To manufacture handbags, a company uses 2 factories, the first has a 50 hours capacity per week, second 35. The factories are used 40 hours for the first and 35 hours for the second. The Turnover is of 12.000 euros. If, for an unspecified reason, the capacity of the second factory goes down to 34 hours, then the turnover drops with 11.500 euros. Thus, the reduced cost is here of 500 for the second factory (and 0 for the first).
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