SensitivityAnalysisExample

SensitivityAnalysisExample - MBAC6080 Decision Modeling and...

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MBAC6080 Decision Modeling and Applications Thomas Vossen Sensitivity Analysis Example (35pts) Use the following graphical solution to determine the missing numbers in the corresponding Excel Sensitivity Analysis report. Explain your results. Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$24 X 12 A 0 2 0.666666667 0.666666667 $D$24 Y 2 0 4 B 2 C 1 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $E$28 Constraint 1 60 D 1/3 60 12 18 $E$29 Constraint 2 36 0.333333333 36 12 6 $E$30 Constraint 3 2 E 0 5 1E+30 3 To illustrate how we can determine these answers, we first consider B and C , which ask for the allowable increase resp. decrease in the objective function coefficient of Y (which X Y 10 10 20 20 Objective function: 2X+4Y=40 Constraint 3: Y≤5 Constraint 1: 4X+6Y≤60 Optimal Solution (12,2) LP Model: Maximize 2X + 4Y s.t. 4X + 6Y ≤ 60 (1) 2X + 6Y ≤ 36 (2) Y ≤ 5 (3) X, Y ≥ 0 Constraint 2: 2X+6Y≤36
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equals 4). In other words, our objective is to determine by how much Y’s objective
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SensitivityAnalysisExample - MBAC6080 Decision Modeling and...

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