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QingPeng (QP) Zhang qpzhang@email.arizona.edu

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Sensitivity analysis is concerned with how changes in an linear programming’s parameters affect the optimal solution.

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Profit generated by each soldier $3 Profit generated by each train $2

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Constraint/ObjectiveSlope Finishing constraint-2 Carpentry constraint-1.5 Objective function Basic variable Basic solution

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CChange objective function coefficient CChange right-hand side of constraint OOther change options SShadow price TThe Importance of sensitivity analysis

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How would changes in the problem’s objective function coefficients or the constraint’s right-hand sides change this optimal solution?

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? ?

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Change objective function coefficient Change right-hand side of constraint Other change options Shadow price The Importance of sensitivity analysis

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As long as the binding point (B) of finishing and carpentry constraints is feasible, optimal solution will occur at the binding point.

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Change objective function coefficient Change right-hand side of constraint Other change options Shadow price The Importance of sensitivity analysis

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Change objective function coefficient Change right-hand side of constraint Other change options Shadow price The Importance of sensitivity analysis

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To determine how a constraint’s rhs changes the optimal z-value. The shadow price for the ith constraint of an LP is the amount by which the optimal z-value is improved (increased in a max problem or decreased in a min problem).

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Change objective function coefficient Change right-hand side of constraint Other change options Shadow price The Importance of sensitivity analysis

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Deal with the uncertainty about LP parameters

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What is sensitivity analysis? Why do we perform sensitivity analysis? How far do we like to perform sensitivity analysis? In an LP sensitivity analysis,

What is sensitivity analysis? Why do we perform sensitivity analysis? How far do we like to perform sensitivity analysis? In an LP sensitivity analysis,

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