CHAPTER 4
LINEAR PROGRAMMING SENSITIVITY ANALYSIS
SOLUTIONS TO DISCUSSION QUESTIONS
4-1. In most real world situations that are modeled using LP, conditions are dynamic and changing.
Hence, input data such as resource availabilities, prices, and costs used in the LP model are estimated,
rather than known with certainty. In such environments, sensitivity analysis can be used to identify the
4-2. Sensitivity analysis is important in all decision modeling techniques. For example, it is important in
4-3. A change in a resource’s availability (right-hand-side) changes the size of a feasible region. An
increase means more units of that resource are available, causing the feasible region to increase in size. A
4-4. A change in an objective function coefficient changes the slope of the objective function, with
4-5. Simultaneous changes in input data values are extremely logical in many contexts. For example, it
4-6. We use the 100% rule to verify if the shadow prices in the current Sensitivity Report are still valid to
analyze the impact of a proposed simultaneous change in input data values. To analyze a simultaneous
4-7. The pricing-out procedure allows a firm to analyze if a new product will be profitable enough to be
4-8. In most cases, when the Allowable Increase or Allowable Decrease column for the objective function
4-9. The shadow price of a resource indicates the marginal value of each additional unit of that resource