This brief video explains the components of LP Sensitivity Analysis using an Excel Solver Report. A few questions were also answered based on the following Linear Programming model.
Max 50A + 60B + 55C
s.t.
A + B + C ≤ 100
2A + 3B + 2C ≤ 300
2A + 3B + 2C ≥ 250
A + 2C ≥ 60
1. State the optimal solution
2. What is the optimal objective function value?
3. What would happen to the optimal solution if
a) the unit profit on B decreases by 20?
b) the unit profit on C decreases to 45?
c) the unit profits on A & C change to 53 (Simultaneous Changes-100% Rule)?
4. Interpret the reduced cost for A
5. What would happen to the objective function if
a) the RHS of constraint 1 increases by 5?
b) the RHS of constraint 2 decreases to 250?
c) the RHS of constraint 4 changes to 44?
6. Which constraints are binding?
7. What are the slack/surplus values?
