Zahra_Mohaghegh_Feb26-full

Zahra_Mohaghegh_Feb26-full - Engineering Management Systems...

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1 Engineering Management & Systems Engineering The George Washington University EMSE 102-202 EMSE 102-202 Survey of Operations Research Methods Survey of Operations Research Methods Zahra Mohaghegh [email protected] Post-Doctoral Research Associate Center For Risk and Reliability University of Maryland February 26, 2008
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2 Engineering Management & Systems Engineering The George Washington University Sensitivity Analysis : An Sensitivity Analysis : An Applied Approach Applied Approach
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3 Engineering Management & Systems Engineering The George Washington University Outline Outline Defining the Topic Changing the Objective Function Coefficients Changing the Right Hand Sides Shadow Price Importance of Sensitivity Analysis The Computer and Sensitivity Analysis Managerial Use of Shadow Prices
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4 Engineering Management & Systems Engineering The George Washington University Outline Outline Defining the Topic Changing the Objective Function Coefficients Changing the Right Hand Sides Shadow Price Importance of Sensitivity Analysis The Computer and Sensitivity Analysis Managerial Use of Shadow Prices
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5 Engineering Management & Systems Engineering The George Washington University What is “What-if analysis”? What is “What-if analysis”? Studies of how changes in the model parameters affect the optimal basis and its associated optimal solution. Also called Sensitivity analysis provides a wealth of information to decision makers not only about how robust a solution is, but also about elements with high leverage.
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6 Engineering Management & Systems Engineering The George Washington University Giapetto’s Workshop Giapetto’s Workshop Giapetto’s, Inc., manufactures wooden soldiers and trains. Product characteristics: Each week Giapetto can obtain: All needed raw material. Only 100 finishing hours. Only 80 carpentry hours. Demand for the trains is unlimited. At most 40 soldiers are bought each week. Exercise: build an LP model to maximize Giapetto’s profit Product\Resources Soldier Train Selling Price $27 $21 Raw Materials $10 $9 Cost $14 $10 Finishing Hours 2 1 Carpentry Labor 1 1
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7 Engineering Management & Systems Engineering The George Washington University Model Model Defining x 1 as the number of soldiers, and x 2 the number of trains, we obtain the following optimization problem. max z = 3 x 1 + 2 x 2 s . t . 2 x 1 + x 2 100 x 1 + x 2 80 x 1 40 x 1 0 x 2 0
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8 Engineering Management & Systems Engineering The George Washington University Questions Questions Consider the “Giappetto’s Workshop” problem. Giappetto as a decision maker is interested not only on how much trains and soldiers to produce. He might also want to answer questions like: 1. How much does the price of a soldier have to increase to make them more profitable?
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Zahra_Mohaghegh_Feb26-full - Engineering Management Systems...

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