Sensitivity Analysis
The constants and coefficients in a linear programming problem are usually estimates. As estimates, the values of the constants and coefficients may change as new information is developed or business conditions change. Sensitivity analysis helps us to evaluate how an optimal solution may change if these estimates change.
Read in Section 4.5
- How will changes in a constraint’s constant change the optimal solution?
- How will changes in the objective function’s coefficients change the optimal solution?
Applications
- Handout: Linear Programming in Excel
- Handout: Sensitivity Report in Excel