33:136:386 Chapter 3: Linear Programming on the Computer

• School: Rutgers University
• Department: Business Analytics and Information Technology
• Course: 33:136:386
• Professor: Ely, Romulo

Document Summary

Objective function coefficient ranges with the computer : excel can generate a sensitivity report. Solving : cli(cid:272)k o(cid:374) (cid:858)data(cid:859) ta(cid:271), go to (cid:858)sol(cid:448)er(cid:859), e(cid:374)ter sol(cid:448)er para(cid:373)eters. Cli(cid:272)k o(cid:374) (cid:858)add(cid:859) to add (cid:373)odel (cid:272)o(cid:374)strai(cid:374)ts: cases of sensitivity analysis. Changing objective function parameters will change the slope of the objective function and provide a new optimal point. Changing constraints constant values same slope, moves the objective function up or down (parallel to old one). The sensitivity range for a right-hand side value is the range of values over which the quantity values can change without changing the solution variable mix; including slack variables. Changing individual constraint parameters changes the slope. Shadow prices (dual variable values) marginal value of one additional unit of resource: the sensitivity range for a constraint quantity value is also the range over which the shadow price is valid.