Sensitivity Analysis and Managerial Decision Making

Linear Programming, chapter 2

1. Be able to put an objective function or constraint onto "proper form" for entry into QM.
2. What is the meaning of the values in the "Dual" column in the QM output?
3. what are you willing to pay up to. if the dual is 16, you are willing to pay up to $16

1. What is the meaning of the term "marginal value"?
2. same things as "dual" what you re willing to pay up to.

1. What is the meaning of the term "sensitivity analysis"?
2. Why can sensitivity analysis be important to managers and other decision makers?
3. able to look at model/output and see if you need to make any operation changes, based on the information given. Outside the sensitivity rage, you need to rerun the model and figure out the problem.

1. What is a "sensitivity range" of an objective coefficient?
2. to see if you need to make any operation changes, if inside the sensitivity rage, you are ok. Outside you need to make changes

1. In general, what changes if an objective function coefficient changes?
2. In general, what changes if the right hand side of a constraint changes?