Linear Programming -- Objective Sensitivity

The amount by which the coefficient can decrease or

Info icon This preview shows pages 4–8. Sign up to view the full content.

View Full Document Right Arrow Icon
The amount by which the coefficient can decrease or increase is what Excel called the ALLOWABLE DECREASE ALLOWABLE DECREASE and the ALLOWABLE ALLOWABLE INCREASE INCREASE of the objective function coefficient. The range of values of this coefficient from the (Original Coefficient – Allowable Decrease) to (Original Coefficient + Allowable Increase) is called the Range of Optimality Range of Optimality for the coefficient.
Image of page 4

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

View Full Document Right Arrow Icon
Range of Optimality On Excel Range of Optimality On Excel Here is the printout out of the sensitivity analysis dealing with the objective function coefficients for the original Galaxy Industries problem. Range of Optimality for C 1 8 – 4.25  8 + 2 3.75  10 Range of Optimality for C 2 5 – 1  5 + 5.666667 4  10.666667 Range of Optimality Range of Optimality is the range of values that an objective function coefficient can assume without changing the optimal solution as long as no other changes are made .
Image of page 5
Reduced Cost Reduced Cost Max. 1 1 X 1 + 5X 2 ST 2X 1 + 1X 2 ≤ 1000 (Plastic) 3X 1 + 4X 2 ≤ 2400 (Time) 1X 1 + 1X 2 700 (Limit) 1X 1 - 1X 2 350 (Product mix) X 1 , X 2 ≥ 0 The optimal solution is X X 1 1 = 0, X = 0, X 2 = 600, = 600, objective function = 3,000 = 3,000 No product 1 were produced because its unit profit was not large enough.
Image of page 6

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

View Full Document Right Arrow Icon
Questions Questions Question 1 How much would the cost have to be reduced (profit be increased) so that it would be profitable to make X 1 ’s?
Image of page 7
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern