Q2:What if per unit profit for Deluxe model is
12.25?
Q3: What if an 10 more hours of production time is available in
cutting & dyeing?
inspection?

LP: Sensitivity Analysis
13
Sensitivity Analysis
Q1: How much the unit profit of
Ace can go up or down from
$8 without changing the
current optimal production
quantities?
As long as the slope of the objective
function isoprofit line stays within the
binding constraints.
Maximize 10 x
1
+ 8 x
2
= Z
7/10 x
1
+
x
2
630
1/2 x
1
+ 5/6 x
2
600
x
1
+ 2/3 x
2
708
1/10 x
1
+ 1/4 x
2
135
x
1
≥
0, x
2
≥
0
x
1
+
x
2
≥
150
Golf bags
X
1
: Deluxe
X
2
: Ace

LP: Sensitivity Analysis
14
Solver “Sensitivity Report”
Maximize 10 x
1
+ 8 x
2
= Z
Z = 7416
x
1
= 540, x
2
= 252
Q1: How much the unit profit of Ace can go up or down from $8 without
changing the current optimal production quantities?
Range for X1: 10
–
4.4 to 10 + 2
Range for X2: 8
–
1.333 to 8 + 6.286
Try per unit profit for X2 as 14.28, 14.29, 6.67 and 6.66
Q2:What if per unit profit for Deluxe model is
12.25?
Slight round off error?
Reduced cost will be explained later.