Explain the management implications of sensitivity analysis. leads to the formulation: Max 40F 30S s:t 2 /5F 1 /2 S 20 Material

Explain the management implications of sensitivity analysis.

leads to the formulation: Max 40F þ 30S s:t 2 /5F þ 1 /2 S  20 Material 1 1 /2 S  5 Material 2 3 /5F þ 3 /10 S  21 Material 3 F; S  0 Use the graphical sensitivity analysis approach to determine the range of optimality for the objective function coefficients. 2 For Problem 1 use the graphical sensitivity approach to determine what happens if an additional three kilos of material 3 become available. What is the corresponding dual price for the constraint? 3 Consider the following linear programme: Max 2x1 þ 3x2 s:t x1 þ x2  10 2x1 þ x2  4 x1 þ 3x2  24 2x1 þ x2  16 x1; x2  0

a. Solve this problem using the graphical solution procedure.

b. Calculate the range of optimality for the objective function coefficient of x1.

c. Calculate the range of optimality for the objective function coefficient of x2.

d. Suppose the objective function coefficient of x1 is increased from 2 to 2.5. What is the new optimal solution?

e. Suppose the objective function coefficient of x2 is decreased from 3 to