Lab Tutorial 1: Sensitivity Analysis

In the Blue Ridge Hot Tubs example, the LP problem was formulated as follows:
MAX: 350X1 + 300X2
S.T.: 1X1 + 1X2 <= 200
9X1 + 6X2 <= 1566
12X1 + 16X2 <= 2880
X1, X2 >= 0

} profit
} pumps
} labor
} tubing
} nonnegativity

Please answer the following questions based on the sensitivity report. Verify the solution using
Fig. 4_4.
Adjustable Cells
Cell
$B$5
$C$5
Constraints
Cell
$D$9
$D$1
0
$D$11

Name
Number to make Aqua-Spas (X1)
Number to make Hydro-Luxes
(X2)

Final
Value
122

Reduced
Cost
0

Objective
Coefficient
350

Allowable
Increase
100

Allowable
Decrease
50

78

300

50

66.66667

Final

Shadow

Constraint

Allowable

Allowable

Name
Pumps Req'd Used

Value
200

Price
200

R.H. Side
200

Increase
7

Decrease
26

Labor Req'd Used

Tubing Req'd Used

1566
2712

16.67
0

1566
2880

234
1E+30

126
168

Changes in the objective function coefficient:

1. What is the maximum value the objective function coefficient on X1 can assume without
changing the optimal solution? ANS: 350+100=450
2. What is the minimum value the objective function coefficient on X1 can assume without
changing the optimal solution? ANS: 350-50=300
3. How much can the objective function coefficient on X1 decrease before changing the optimal
solution?
ANS: Maximum decrease in C1=50
4. What is the optimal objective function value if the objective function coefficient on X2 changes
to 250?
ANS: Change in C2=250-300=-50 is within the allowable range of change [-66.7, 50], the
solution remains optimal. The new optimal objective function value=350*122+250*78=62,200.
5. Will the optimal solution change if the objective function coefficient on X1 changes to 330 and
the objective function coefficient for X2 changes to 310?
ANS: r1=(330-350)/(-50)=0.4
r2=(310-300)/50=0.2
Since X1 and X2 have reduced cost of zero and r1+r2=0.6<1, the optimal solution remains
unchanged.
6. Will the optimal solution change if the objective function coefficients for X1 and X2 both
increases by 10? What is the new optimal objective function value?
ANS: r1=(10)/(100)=0.1
r2=(10)/50=0.2
Since X1 and X2 have reduced cost of zero and r1+r2=0.3<1, the optimal solution remains
unchanged.
The new optimal objective function value=360*122+310*78=68,100.

Changes in the RHS value of a constraint

7. What is the optimal objective function value if the RHS value of the first constraint decreases to
180?
ANS: 180-200=-20 is within the allowable range of change [-26, 7], the shadow price of 200
holds. The optimal objective function value=66100+(-20)*200=62,100.
8. Can you determine the optimal objective function value if the RHS value of the first constraint
changes to 210? If not, re-solve the new model.
ANS: 210-200=10 is outside the allowable range of change [-26, 7], the shadow price of 200
will no longer be valid. It is difficult to determine the optimal objective function value without
resolving the model. After resolving the model, the optimal solution is X1=108 and X2=99 and
the optimal objective function value=350*108+300*99=67,500.

Cell

Name

$B$5

Number to make Aqua-Spas (X1)

$C$5

Number to make Hydro-Luxes (x2)

Final

Reduced

Objective

Allowable

Allowable

Value

Cost

Coefficient

Increase

Decrease

108

350

100

125

99

300

166.6666667

66.66666667

Final

Shadow

Constraint

Allowable

Allowable

Cell

Name

Value

Price

R.H. Side

Increase

Decrease

$D$9

Pumps Req'd Used

207

210

1E+30

$D$10

Labor Req'd Used

1566

28

1566

54

486

$D$11

Tubing Req'd Used

2880

2880

72

792

9. What is the optimal objective function value if the RHS value of the third constraint decreases
by 100?
ANS: -100 [-168, + ), the shadow price of 0 is valid for the third constraint. The optimal
objective function value=66,100+0*(-100)=66,100.
Changes in the constraint coefficient
10. Will the solution remain optimal if the coefficient for X2 in the second constraint changes to 8?
ANS: Assuming that the shadow prices are valid, the reduced cost for X2=300(1*200+8*17+16*0)=-36. In order to maximize the objective function value, X2 needs to be set
to X2=0 in the optimal solution. Clearly, the original optimal solution will be changed.
Cell

Name

$B$5

Number to make Aqua-Spas (X1)

$C$5

Number to make Hydro-Luxes (X2)

Final

Reduced

Objective

Allowable

Allowable

Value

Cost

Coefficient

Increase

Decrease

174

350

1E+30

12.5

-11

300

11.11111111

1E+30

Final

Shadow

Constraint

Allowable

Allowable

Value

Price

R.H. Side

Increase

Decrease

Cell

Name

$D$9

Pumps Req'd Used

174

200

1E+30

26

$D$10

Labor Req'd Used

1566

39

1566

234

1566

$D$11

Tubing Req'd Used

2088

2880

1E+30

792

11. Will the solution remain optimal if the coefficient for X2 in the third constraint changes to 10?
ANS: Assuming that the shadow prices are valid, the reduced cost for X2=300(1*200+6*16.67+10*0)=0. Clearly, any increase of X2 does not increase the objective function
value. This implies the current solution remains optimal.