SENSITIVITY ANALYSIS

•  Changes in the constraint constant

•  Shadow price
•  Reduced cost

•  Changes in the objective function coefficients

•  Single decision variable
•  Simultaneous changes

•  Changes in the constraint coefficient

JRB manufactures tables (x1) and chairs (x2) and derives
a per unit profit of P6 and P8 respectively. Only two
resources are consumed in manufacturing: wood (300
board feet in inventory) and labor (110 hours available).
JRB uses 30 board feet to produce a table and 20 board
feet to produce a chair. He also uses 5 hours of labor to
produce a table and 10 hours to produce a chair.

Maximize π = 6x1 + 8x2

subject to 30x1 + 20x2 ≤ 300 (wood)
5x1 +10x2 ≤110 (labor)
x1, x2 ≥ 0
x2 Maximize π = 6x1 +8x2
subject to 30x1 + 20x2 ≤ 300 (wood)
5x1 +10x2 ≤110 (labor)
15 wood
x1, x2 ≥ 0

11
(4, 9)

labor

10 22 x1
Tableau 1
x1 x2 x3 x4 RHS
-6 -8 0 0 0
30 20 1 0 300
5 10 0 1 110

Tableau 2

x1 x2 x3 x4 RHS
-2 0 0 4/5 88
20 0 1 -2 80
1/2 1 0 1/10 11
Tableau 3

x1 x2 x3 x4 RHS
0 0 1/10 3/5 96
1 0 1/20 -1/10 4
0 1 -1/40 3/20 9
 SENSITIVITY ANALYSIS : CHANGE IN CONSTRAINT CONSTANT
x2
Maximize π = 6x1 +8x2
subject to 30x1 + 20x2 ≤ 300 (wood)
15 5x1 +10x2 ≤110 (labor)
300
x1, x2 ≥ 0
240
500
J v
(1, 10.5) (4, 9)
r
(14, 4)
m

a b c 22 x1
 SENSITIVITY ANALYSIS : CHANGE IN CONSTRAINT CONSTANT
x2
Maximize π = 6x1 +8x2
subject to 30x1 + 20x2 ≤ 300 (wood)
15 5x1 +10x2 ≤110 (labor)
c (2, 12) x1, x2 ≥ 0
d
j
(4, 9)
m r
130
(7, 4.5)
v 110

b 80 22 x1
EXCHANGE COEFFICIENT
- units of one variable that must be given up to
accommodate an increase in another

30 x1 + 20 x2 ≤ 300 wood
5 x1 + 10 x2 ≤ 110 labor

Slack (wood) Slack (labor)

x1 (tables) 1/20 -1/10
x2 (chairs) -1/40 3/20
EXCHANGE COEFFICIENT

Revised value = Original value +

(exchange coefficient x change in constraint constant)

Increase in wood constraint from 300 to 500:

New X1 = 4 + [(1/20) (200)] = 14 tables
New X2 = 9 + [(-1/40) (200)] = 4 chairs

ReducTon in labor constraint from 110 to 80:

New X1 = 4 + [(-1/10) (-30)] = 7 tables

New X2 = 9 + [(3/20) (-30)] = 4.5 chairs
 SENSITIVITY ANALYSIS : CHANGE IN CONSTRAINT CONSTANT
x2
Maximize π = 6x1 +8x2
subject to 30x1 + 20x2 ≤ 300 (wood)
15 5x1 +10x2 ≤110 (labor)
300
x1, x2 ≥ 0

11
(4, 9)

10 22 x1
SENSITIVITY LIMITS
solution value
Exchange ratio =
exchange coefficient in slack column
NO SLACK IN THE ORIGINAL SOLUTION
Lower constraint constant sensiTvity limit = Original level -
smallest posiTve raTo or -∞ (if no raTo is posiTve)
Upper constraint constant sensiTvity limit = Original level +
smallest absolute value of negaTve raTo or ∞ (if no raTo is negaTve)
SLACK IN THE ORIGINAL SOLUTION
Lower constraint constant sensiTvity limit = Original level -
soluTon value of slack
Upper constraint constant sensiTvity limit = ∞
 Slack (wood) Slack (labor)
x1 (tables) 1/20 -1/10
x2 (chairs) -1/40 3/20

Sensi;vity limits for wood constraint

Exchange Solution Exchange
coefficient value ratio
x1 (tables) 1/20 4 80
x2 (chairs) -1/40 9 -360
Lower constraint constant sensiTvity limit = Original level -
smallest posiTve raTo or -∞ (if no raTo is posiTve)
Lower constraint constant sensiTvity limit =300 – 80 = 220
Upper constraint constant sensiTvity limit = Original level +
smallest absolute value of negaTve raTo or ∞ (if no raTo is negaTve)
Upper constraint constant sensiTvity limit = 300 + 360 = 660
 Slack (wood) Slack (labor)
x1 (tables) 1/20 -1/10
x2 (chairs) -1/40 3/20

Sensi;vity limits for labor constraint

Exchange Solution Exchange
coefficient value ratio
x1 (tables) -1/10 4 -40
x2 (chairs) 3/20 9 60
Lower constraint constant sensiTvity limit = Original level -
smallest posiTve raTo or -∞ (if no raTo is posiTve)
Lower constraint constant sensiTvity limit =110 – 60 = 50
Upper constraint constant sensiTvity limit = Original level +
smallest absolute value of negaTve raTo or ∞ (if no raTo is negaTve)
Upper constraint constant sensiTvity limit = 110 + 40 = 150
SENSITIVITY LIMITS
solution value
Exchange ratio =
exchange coefficient in surplus column
NO SURPLUS IN THE ORIGINAL SOLUTION
Lower constraint constant sensiTvity limit = Original level - smallest
absolute value of negaTve raTo or -∞ (if no raTo is negaTve)
Upper constraint constant sensiTvity limit = Original level +
smallest posiTve raTo or ∞ (if no raTo is posiTve)
SURPLUS IN THE ORIGINAL SOLUTION
Lower constraint constant sensiTvity limit = -∞
Upper constraint constant sensiTvity limit = Original level + soluTon
value of surplus