1. A Graphical Introduction to Sensitivity Analysis
Sensitivity is concerned with how changes in an LPs parameters affect
the LPs optimal solution.
2. Example: The Giapetto problem in Wi
A new company Wyndor Glass Company has:
8' glass door : product 1
4 6' window : product 2
Resources : Production Capacities in 3 plants are as follow
Operations Research (OR) / Management Science
A scientific approach to decision that involves the operations
of organizational systems.
The art of giving bad answers to problems which otherwise
Dr. Lazar Spasovic
THE SIMPLEX METHOD
An algorithm will solve an LP if it:
(a) demonstrates that there is a feasible solution
(b) determines an optimal solution
Unbounded feasible region: A feasible region t
THE METHOD OF LEAST SQUARES
Given a set of n points (x1, y1), (x2, y2), .(xn, yn) and a positive integer m, which polynomial of
degree m is closest to the given points? Lets focus on linear polynomial in th
STOCHASTIC PROCESSES AND
Review of Probability Theory
Event a specified outcome of a random phenomenon
Simple event: single possible outcome
3 heads from 3 coins HHH
2 or more
Nonlinear Programming (NLP)
Product Mix Problem with Price Elasticity
Firms profit P ( x ) = x * p( x ) c * x (a nonlinear functi
Nodes or Vertices
Arcs or Edges
Network: Graph with Flow
Chain: A sequence of edges connecting i and j.
Path: Directed Chain
Connected Graph: If there exists ( ) a chain co
Big M example:
Problem: We have 3 different liquids that can be blended to make a 5-oz
-Each unit of liq1 has 2 units alcohol and 3 units juice. Cost is $3.
-Each unit of liq2 has 3 units alcohol and 1 unit juice. Cost is $2.
-Each unit of liq3