Abstract
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.
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