Lecture 2
Graphical sensitivity
analysis
Elements of an LP Model
Problem Formulation/ Modeling
Process of translating the verbal statement of a
problem into a mathematical statement model:
• Understand the problem thoroughly.
• Define the decision variables.
• Describe the objective.
• Describe each constraint.
• Write the objective in terms of the decision
variables.
• Write the constraints in terms of the decision
variables.
Types of constrains
1- redundant constraint: the constraint that has no change
on the feasible region
removing this constraint doesn't affect the optimal sol.
if redundant constraint pass through the optimal solution.
This solution called degenerate solution
2- Bending constraint: passes through optimal
solution
3- Nonbinding constraint: doesn't pass through
optimal solution constraint
Graphical Sensitivity Analysis
Two cases will be considered sensitivity of the
optimum solution :
1. Effect of changes in R.H.S. of the constraints (resource
availability).
Scarce resource: the resource that its availability is totally
consumed
its constrained is called binding. This constraint pass
through optimal solution
Abundant Resource: the resource that its availability isn't
totally consumed
its constraint is called nonbinding . This constraint doesn’t
pass through optimal solution
2. Effect of changes in the coefficients of the objective
function (Cj).
Example :
JOYCO produces two products on two machines. A unit of
product 1 requires 2 hours on machine 1 and 1 hour on
machine 2. For product 2, a unit requires 1 hour on machine 1
and 3 hours on machine 2. The revenues per unit of products 1
and 2 are $30 and $20, respectively. The total daily processing
time available for each machine is 8 hours.
Solution:
Let x1=number of unit of product 1
X2=number of unit of product 2
Model formulation:
Maximize z=30x1+20x2
Subject to
2x1+ x2 ≤ 8 (machine 1)
X1+ 3x2≤8 (machine 2)
X1,x2 ≥ 0 (non negativity constraints)
Solution
To draw this model following as:
1- To draw 2x1+ x2 ≤ 8 , convert to equality form as
a- first equality 2x1+ x2 =8
b-set x1=0 this lead to x2=8
c-set x2=0 this lead to x1=4
1- To draw x1+ 3x2≤8 ,convert t equality form as
a- First equality x1+ 3x2 = 8
b- Set x1 =0 , this lead to x2=8/3
c- Set x2=0 , this lead to x1=8
Optimal solution of the basic example
changes in the availability of the resources
(right-hand side of the constraints)
If the daily capacity is increased from 8 hours
to 9 hours.
what is the rate of change in optimum z :
1. resulting from changing machine 1 capacity from 8
hours to 9 hours, can be computed as follows:
o the new optimum will occur at point G (as shown in
previous graph)
This means that a unit increase (decrease) in
machine 1 capacity will increase (decrease)
revenue by $14 (W.P.U.) .
clear that the dual price of $14.00/hr remains valid
for changes (increases or decreases) in machine 1
capacity that move its constraint parallel to itself to
any point on the line segment BF.
Minimum machine 1 capacity [at B=(0,2.67)]= 2*0
+1* 2.67=2.67
Maximum machine 1 capacity[ at f=(8,0)]=
2*8+1*0=16
Then
2.67 ≤ machine 1 capacity ≤ 16
2- Same manner computation for machine 2
Minimum machine 2 capacity [at D=(4,0)]=1*4
+3* 0=4
Maximum machine 2 capacity [ at E=(0,8)]=
1*0+3*8=24
The conclusion is that the dual price of
$2.00/hr for machine 2 will remain applicable
for the range
4 ≤ machine 2 capacity ≤ 24
The dual prices allow making economic decisions about
the LP problem, as the following questions demonstrate:
Question 1: If JOBCO can increase the capacity of both machines,
which machine should receive higher priority? The dual prices for
machines 1 and 2 are $14.00/hr and $2.00/hr.l11is means that each
additional hour of machine 1 will increase revenue by $14.00, as
opposed to only $2.00 for machine 2. Thus, priority should be given
to machine 1.
Question 2: A suggestion is made to increase the capacities of
machines 1 and 2 at the additional cost of $10/hr. Is this advisable?
For machine 1, the additional net revenue per hour is 14.00 -10.00
= $4.00 and for machine 2, the net is $2.00 -$10.00 =-$8.00. Hence,
only the capacity of machine 1 should be increased.
Question 3: If the capacity of machine 1 is increased from the present 8
hours to 13 hours, how will this increase impact the optimum revenue?
The dual price for machine 1 is $14.00 and is applicable in the range
(2.67, 16) hr. The proposed increase to 13 hours falls within the feasibility
range. Hence, the increase in revenue is $14.00(13 - 8) = $70.00, which
means that the total revenue will be increased to (current revenue +
change in revenue) 128 + 70 =$198.00
Question 4: Suppose that the capacity of machine 1 is increased to 20
hours, how will this increase impact the optimum revenue? The
proposed change is outside the range (2.67, 16) hr for which the dual
price of $14.00 remains applicable.
Thus, we can only make an immediate conclusion regarding an
increase up to 16 hours. Beyond that, further calculations are needed
to find the answer.
Remember that falling outside the feasibility range does not mean
that the problem has no solution.
It only means that we do not have sufficient information to make an
immediate decision.
Changes in the Objective Coefficients
Changes in revenue units (i.e., objective-function
coefficients) will change the slope of z. However, as
can be seen from the figure below, the optimum
solution will remain at point C so long as the
objective functions between lines BF and DE, the two
constraints that define the optimum point.
This means that there is a range for the coefficients of
the objective function that will keep the optimum
solution unchanged at C
We can write the objective function in the general
format Maximize z= c1x1+c2x2 Imagine now that the
line z is pivoted at C and that it can rotate clockwise
and counterclockwise.
The optimum solution will remain at point C so long
as z = c1x1 + c2x2 lies between the two lines x1 + 3x2
= 8 and 2xI +x2 = 8.
This means that the ratio (c1/c2) can vary between
1/3 and 2/1, which yields the following condition:
This information can provide immediate answers regarding
the optimum solution as the following questions
demonstrate:
Question 1. Suppose that the unit revenues for products 1
and 2 are changed to $35 and $25, respectively. Will the
current optimum remain the same?
o The new objective function is:
Maximize z=35x1+25x2
o The solution at C will remain optimal because c1/c2 = 1.4
remains within the optimality range (0.333,2).
o When the ratio falls outside this range, additional
calculations are needed to find the new optimum .
o Notice that although the values of the variables at the
optimum point C remain unchanged, the optimum value of
z changes to
35 X (3.2) + 25 X (1.6) = $152.00
Question 2. Suppose that the unit revenue of product
2 is fixed at its current value of C2 = $20.00. What is
the associated range for c1, the unit revenue for
product 1 that will keep the optimum unchanged?
o Substitution c2 =20 in the condition
o We can similarly determine the optimality
range for C2 by fixing the value of CI at $30.00.
Thus,
