SEHH1008 Mathematics and

Statistics for College Students

SEHH1008 Mathematics and Statistics for College Students 1

 Chapter 11 – Linear Programming (Sensitivity Analysis)
• Sensitivity Analysis
• Objective Function Coefficients
• Right-hand Side Values of Constraints
• Range of Optimality
• Dual Price

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 Sensitivity Analysis
• Sensitivity analysis (or post-optimality analysis) is
used to determine how the optimal solution is
affected by changes, within specified ranges, in:
• the objective function coefficients
• the right-hand side (RHS) values of constraints

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 Objective Function Coefficients
• Consider how changes in the objective function
coefficients might affect the optimal solution.
• The range of optimality for each coefficient provides
the range of values over which the current solution
will remain optimal.

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 Example 1
LP Formulation
Max 5 x1  7 x2
s.t. x1  6
2 x1  3 x2  19
x1  x2  8
x1 , x2  0

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 Example 1
Graphical Solution
x2
8

x1 = 6
6

5
Optimal:
4 x1 = 5, x2 = 3, z = 46

x1
1 2 3 4 5 6 7 8 9 10

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 Example 1
Changing Slope of Objective Function
x2
8

6
5
5

3
Feasible 4
2
Region 3
1

1 2 x1
1 2 3 4 5 6 7 8 9 10

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 Range of Optimality
• Graphically, the limits of a range of optimality are
found by changing the slope of the objective function
line within the limits of the slopes of the binding
constraint lines.
• The slope of an objective function line, Max c1 x1  c2 x2
is  c1 c2 and the slope of a constraint a1 x1  a2 x2  b
is  a1 a2

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 Example 1 (continue)

Range of Optimality for c1

c1
• Slope of the objective function line is  .
c2

• Slope of the first binding constraint, x1  x2  8 , is -1

2
• Slope of the second binding constraint, 2 x1  3x2  19 , is  .
3

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 Example 1 (continue)
Range of Optimality for c1
• Find the range of values for c1 (with c2 staying 7) such that
the objective function line slope lies between that of the
two binding constraints:

c1 2
1    
7 3
i.e. 14  c  7
1
3

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 Example 1 (continue)
Range of Optimality for c2
• Find the range of values for c2 ( with c1 staying 5) such that
the objective function line slope lies between that of the
two binding constraints:
5 2
1    
c2 3
15
i.e. 5  c2 
2

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 Right-Hand Sides (RHS)
• Consider how a change in the RHS for a constraint
might affect the feasible region and perhaps cause a
change in the optimal solution.
• The improvement in the value of the optimal solution
per unit increase in the RHS is called the dual price.

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 Dual Price
• Graphically, a dual price is determined by adding +1 to
the right hand side value in question and then
resolving for the optimal solution in terms of the same
two binding constraints.
• The dual price is equal to the difference in the values
of the objective functions between the new and
original problems.
• The dual price for a nonbinding constraint is 0.

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 Example 1 (continue)
Constraint 1:
Since x1  6 is not a binding constraint, its dual price is 0.

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 Example 1 (continue)
Constraint 2:
Change the RHS value of the second constraint to 20
Resolve for the optimal point determined by the last
two constraints: 2 x1  3 x2  20
x1  x2  8

The solution is x1  4 , x2  4 and z  48

Hence, the dual price is znew  zold  48  46  2

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 Example 1 (continue)
Constraint 3:

Change the RHS value of the third constraint to 9

Resolve for the optimal point determined by the last

two constraints: 2 x1  3x2  19
x1  x2  9

The solution is x1  8 , x2  1 and z  47

Hence, the dual price is znew  zold  47  46  1

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 Example 2
A wire manufacturer produces two types of wire, metalizing wire
and fastener wire, from special aluminum and steel alloys. The
anticipated unit profits are $10 for metalizing wire and $15 for
fastener wire. The number of pounds of each alloy needed per unit
of wire is summarized in the following table.
Aluminum Alloy Steel Alloy
Metalizing wire 2 3
Fastener wire 4 2

A supplier delivers 100 pounds of the aluminum alloy and 80

pounds of the steel alloy weekly. How many units of metalizing wire
and fastener wire should the manufacturer produce each week?

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 Example 2
(a) How many units of metalizing wire and fastener wire should
the manufacturer produce each week? What is the
maximized profit?
(b) Suppose the profit on each unit of metalizing wire is
increased to $20. Is the above solution still optimal? What is
the value of the objective function when this unit profit is
increased to $20?
(c) If the unit profit on metalizing wire were $6 instead of $10,
would the optimal solution change?
(d) What is the dual price of having 1 extra pound of aluminum?

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 Example 2 – solutions to part (a)
• Let x1 be the number of units of metalizing wire produced weekly, and
x2 be number of units of fastener wire produced weekly.

• Model Formulation
Max 10x1  15x2 (Total weekly profit)
s.t. 2 x1  4 x2  100 (Aluminum available)
3 x1  2 x2  80 (Steel available)
x1 , x2  0

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 Example 2 – solutions to part (a)
• Graphical Solution: x
2

40
3x1 + 2x2 = 80

30
Optimal:
x1 = 15, x2 = 17.5
20

10
2x1 + 4x2 = 100
Max z = 10x1 + 15x2
x1
10 20 30 40 50

• The manufacturer should produce 15 units of metalizing wire and 17.5

units of fastener wire and the maximized profit is 10(15)+15(17.5) =
412.5 dollars
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 Example 2 – solutions to part (b)
10
Slope of the objective function = 
15
1
Slope of the first binding constraint = 
2
3
Slope of the second binding constraint = 
2

The range of values for c1 such that the objective function line
slope lies between that of the two binding constraints:
3 c1 1
   i.e. 7.5  c1  22.5
2 15 2
Since 20 is within this range, the optimal solution will not change.
The optimal profit will change:
20x1  15x2  20(15)  15(17.5)  562.5
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 Example 2 – solutions to part (c)
The solution remains optimal as long as the objective
function coefficient of x1 is between 7.5 and 22.5. Since
6 is outside this range, the optimal solution would change.

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 Example 2 – solutions to part (d)
Change the RHS value of the constraint regarding
aluminum availability to 101 and resolve for the optimal
point 2 x1  4 x2  101
3x1  2 x2  80

Thus, x1  14.75 , x2  17.875 and

z  10(14.75)  15(17.875)  415.625

Hence, the dual price is

znew  zold  415.625  412.5  3.125
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