The Simplex method uses which of the following values to determine if the objective function value can be improved?
A) shadow price
B) target value
C) reduced cost
D) basic cost

Question

Quizplus · Accepted Answer

The simplex method uses reduced cost to determine if the objective function value can be improved. The reduced cost is the amount by which the objective function coefficient would have to improve in order for that variable to enter the basis. If a variable has a negative reduced cost, it means that improving its coefficient would improve the objective function value, and thus it should be considered for entering the basis.

The Simplex Method Uses Which of the Following Values to Determine