Chapter 3.docx

1 Page
Unlock Document

University of Toronto Scarborough
Management (MGO)
Vinh Quan

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
More Less

Related notes for MGOC10H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.