The use of shadow price in capital rationing problem

This paper attempts to point up the use of shadow prices in capital rationing problem and the use of linear programming to transfer funds from earlier to later periods ,there is a relation ship between amount transferred , the period shadow prices and the changing the objective function . the method of transferring funds has two advantage , an increase in the objective function without using external resources and the problem of accepting fractional projects can be overcome .


Baaloudj B.

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