Textbook Notes (362,776)
MGOC10H3 (3)
Vinh Quan (3)
Chapter 3

# Chapter 3.docx

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School
University of Toronto Scarborough
Department
Management (MGO)
Course
MGOC10H3
Professor
Vinh Quan
Semester
Fall

Description
Chapter 3 Linear Programming: Sensitivity Analysis and Interpretation of Solution  sensitivity analysis  study of how changes in coefficients of a linear programming problem affect optimal solution 3.1 Introduction to Sensitivity Analysis  sensitivity analysis is important to decision makers because real-world problems exist in a changing environment  sensitivity analysis can also be used to determine which coefficients in a linear programming model are crucial  another aspect of sensitivity analysis concerns changes in the right-hand-side values of the constraints 3.2 Graphical Sensitivity Analysis  for linear programming problems with two decision variables, graphical solution methods can be used to perform sensitivity analysis on the objective function coefficients and the right-hand-side values for the constraints Objective Function Coefficients  range of optimality  the range of values over which an objective function coefficient may vary without causing any change in the values of the decision variables in the optimal solution  managerial attention should be focused on those objective function coefficients that have a narrow range of optimality and coefficients near the end points of the range  with these coefficients, a small change can necessitate modifying the optimal solution  range of optimality for objective function coefficients is only applicable for changes made to one coefficient at a time  if two or more objective function coefficients are changed simultaneously, further analysis is necessary to determine whether
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