Open AccessOpportunities for Making Production-Related Decisions on the basis of Shadow Prices
Author(s) -
D. Fuksa
Publication year - 2021
Publication title -
inżynieria mineralna
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.215
H-Index - 9
ISSN - 1640-4920
DOI - 10.29227/im-2019-01-51
Subject(s) - shadow price , production (economics) , shadow (psychology) , coal mining , limit (mathematics) , coal , operations research , computer science , affect (linguistics) , economics , environmental economics , microeconomics , engineering , mathematical optimization , mathematics , waste management , psychology , linguistics , philosophy , mathematical analysis , psychotherapist
This article describes how shadow prices can be used as active constraints (in this case constraints of mine production capacity)to address and support production-related decision-making. This is an algorithm from a post-optimal analysis developed by theauthor as part of a method for rationalising production decisions for a formal group (PGG, a company) of hard coal mines.Opportunities for using shadow prices are presented using examples of actual mines. The developed algorithm provides a quickway of obtaining information, with no need to solve the problem again, about possible gains or losses resulting from an increase ora decrease in a selected production limit, to determine how changes to such constraints will affect the profits and production andsales structures for specific coal sizes.