sensitivity_analysis

sensitivity_analysis - SENSITIVITY ANALYSIS: AN APPLIED...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: SENSITIVITY ANALYSIS: AN APPLIED APPROACH Effect of changes in objective function coefficients. Effect of changes in RHS coefficients. Shadow Prices. Importance of sensitivity analysis. Saigal (U of M) IOE 310 1 / 6 AN EXAMPLE maximize z = 3 x 1 + 2 x 2 2 x 1 + x 2 100 x 2 + x 2 80 x 1 40 x 1 x 2 where x 1 = number of toy soldiers produced. x 2 = number of toy trains produced. Saigal (U of M) IOE 310 2 / 6 Graphic Solution: Saigal (U of M) IOE 310 3 / 6 CHANGE OF COST COEFFICIENT Let c 1 be the contribution to profit by each soldier, i.e., the coefficient of x 1 . c 1 = 3. Question : How much can c 1 change before the current basis changes? x 2 =- 3 2 + constant 2 . The objective function. x 2 =- x 1 + 80. The carpentry constraint.- c 1 2 <- 1. x 2 =- 2 x 1 + 100. The finishing constraint.- c 1 2 >- 2. Thus, the basis will not change if 2 c 1 4....
View Full Document

Page1 / 6

sensitivity_analysis - SENSITIVITY ANALYSIS: AN APPLIED...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online