QUAN-lecture 3 - BUSQOM 0050 Lecture Notes Linear...

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BUSQOM 0050 Lecture Notes Linear Programming – Part 3 Sensitivity Analysis (continued) 1. Simultaneous changes – the 100% rule We can analyze simultaneous changes in either OFC values or RHS values (but not a mixture of the two) under a specific condition. This condition is called the 100% rule. 1 changes Change Allowable change As long as this sum does not exceed 1, the information given in the current sensitivity report is valid. a. Simultaneous changes in constraint RHS values Analyze the following: Decrease of 500 units in the number of electronic components. Increase of 200 hours in the assembly time available 1
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b. Simultaneous changes in OFC values Analyze the following: Decrease the selling price (and thus profit) of DVD players by $3 per unit Increase the selling price of stereos by $8. Sum of ratios= 3/5 + 8/40= .8<1 2
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2. Pricing out new variables Information given in sensitivity report can be used to study impact of introduction of new decision variables (products). For example:
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QUAN-lecture 3 - BUSQOM 0050 Lecture Notes Linear...

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