Introduction to Operations Research

Decision Models in Management

MNG 617

Prof. Pankaj Dutta

SJMSOM, IITBombay

2016 1
 OR : Research on Operations

Text References:
 Hiller, F. S. and Lieberman, G. J., Introduction to Operations Research,
McGraw-Hill, Ninth Edition, 2010.
 Render, B., Stair, R. M, Quantitative Analysis for Management, Prentice
Hall of India Private Limited, Tenth Edition, 2009.
 Taha, H. A., Operation Research: An Introduction, Pearson Education,
Eighth Edition, 2007.
 Sharma, S. D., Operations Research, Kedar Nath Ram Nath & Co,
Fourteenth Edition, 2005.

2016 2
Origins of Operations Research
(World War II)

The modern field of operations research emerged during World War

II. Scientists in the UK (Patrick Blackett) and in the US (George
Dantzig) looked for ways to make better decisions in such areas as
logistics and training schedules.
After the war it began to be applied to similar problems in industry.

2016 3
What is Operation Research?

 OR is concerned with the application of scientific tools and

techniques to decision-making problems involving operations of
an integrated system so as to provide optimum solutions to a
problem.
 The methods of OR are very often used in Management Science,
Industrial Engineering, Mathematics, Economics, etc. to analyze
complex real-world systems, typically with the goal of improving
or optimizing performance.

 It provides an understanding that gives the managers’ new

insights and capabilities to determine better solutions in their
decision-making problems.

2016 4
 Managerial Approach to Decision Making

Manager analyzes
situation (alternatives)

Makes decision to
resolve conflict

Decisions are
implemented

2016 5
 THE MODELING PROCESS

The Role of Managerial Judgment in the Modeling Process:

as applied to the first two stages of decision making.

Analysis
Model Results
Abstraction

Interpretation
Symbolic
World

Real
World

Management Intuition
Decisions
Situation

2016 6
 Five Stages of applying modeling to real world
decision making

Phases of OR Study:

Stage 1: Study the environment to Frame the Managerial

Situation.
Stage 2: Construct a symbolic (quantitative) model.

Stage 3: Analyze the model to generate results.

Stage 4: Interpret and validate model results.

Stage 5: Implement validated knowledge.

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The general OR model can be depicted as

Maximize/Minimize
Objective Function
Subject to
Constraints

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 Types of Models:

 Optimizations Models
 Analytic Models
 Decision Analysis Models
 Simulations Models
 Knowledge-Based Models

2016 9
Applications of Operations Research

2016 10
Private Sector
Service
 Portfolio management
 Location of retail facilities
 Insurance and risk
management
 Airplane scheduling
 Advertising media mix
 Public Transportation
2016
Industrial
 Food and chemical blending
 Optimal inventory policies
 Capital budgeting
 Distribution of products
 New product introduction
 Assignment of facilities
 Queuing analysis of facilities
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Public Sector
Social
 Air-water Pollution control
 Natural resources planning
and allocation
 Emergency response system
 Political campaign strategies
 Educational planning and
school bus scheduling
 Solid waste disposal
2016
Health
 Hospital admissions
 Dietary planning
 Hospital utilization and
scheduling
 Blood inventory policies
 Disease control
Aerospace-Military
 Search and rescue efforts
 Inventory, distribution,
maintenance of equipment
 Missile defense and
allocation
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Decision Models in Management

Introduction to Linear Programming

Sessions 1-2

2016 13
Distributing Goods through a Distribution Network

 The Problem. The Distribution Unlimited Co. will be producing the same new
product at two different factories, and then the product must be shipped to two
warehouses, where either factory can supply either warehouse. The distribution
network available for shipping this product is shown in DN Fig. , where F1 and F2
are the two factories, W1 and W2 are the two warehouses, DC is a distribution
center. The amounts to be shipped from F1 and F2 are shown to their left, and the
amounts to be received at W1and W2 are shown to their right. Each arrow
represents a feasible shipping lane. Thus, F1can ship directly to W1 and has three
possible routes (F1->DC-> W2, F1->F2->DC->W2, and F1->W1->W2) for
shipping toW2. Factory F2 has just one route to W2 (F2->DC->W2) and one to W1
(F2->DC->W2->W1).The cost per unit shipped through each shipping lane is
shown next to the arrow. Also shown next to F1->F2 and DC->W2 are the
maximum amounts that can be shipped through these lanes. The other lanes have
sufficient shipping capacity to handle everything these factories can send.
The decision to be made concerns how much to ship through each shipping
lane. The objective is to minimize the total shipping cost.

2016 14
Distributing Goods through a Distribution Network

2016 15
Acme Manufacturing Company

Acme Manufacturing Company has contracted to deliver home windows over

the next 6 months. The demands for each month are 100, 250, 190, 140, 220,
and 110 units, respectively. Production cost per window varies from month to
month depending on the cost of labor, material, and utilities. Acme estimates
the production cost per window over the next 6 months to be $50, $45, $55,
$48, $52, and $50, respectively.
To take advantage of the fluctuations in manufacturing cost, Acme may elect
to produce more than is needed in a given month and hold the excess units for
delivery in later months. This, however, will incur storage costs at the rate of
$8 per window per month assessed on end-of-month inventory.
Develop an optimum production schedule.

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LP model includes three basic elements

 Decision variables that we seek to determine

 Objective that we aim to optimize as a function of

the decision variables

 Constraints that we need to satisfy (restrictions on

the values that can be assigned to the decision
variables)

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Characteristics of LP Problems

 A well-defined single objective must be stated.

 There must be alternative courses of action.

 The total achievement of the objective must be
constrained by scarce resources or other restraints.

 The objective and each of the constraints must be

expressed as linear mathematical functions.

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Assumptions of LPP

Proportionality: The contribution of each activity to the value of

objective function and to the constraint is proportional to the
level of the activity xj.
This assumption rules out any exponent other than 1 for any variable in
any term of any function
Additivity: Every function in a LP model is the sum of the individual
contributions of the respective activities.
This assumption rules out the possibility of cross-product term in any
function.
Divisibility: Decision variables in a LP model are not restricted to just
integer values. It is assumed that the activities can be run at
fractional levels.
Certainty: The value assigned to each parameter (cj, aij, bi) of a LP
model is assumed to be a known constant.

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Steps in Formulating LP Problems

1. Define the decision variables.

2. Define the objective. (min or max)
3. Write the mathematical function for the objective.
4. Identify the number of constraints.
5. Express the constraints in mathematical form.
6. Write <, =, or > for each constraint.
7. Impose the non-negativity criterion for decision variables.

2016 20
The general LPP can be described as

Maximize
Z = CX
Subject to
AX ≤ B,
X ≥ 0.
Minimize
or, Z = CX
Subject to
AX ≥ B,
X ≥ 0.

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Common Terminology :

 Resources : Production capacities of plants (m

plants)
 Activities : Production of products (n products)
Z - value of overall measure of performance
Xj - level of activity j (j = 1,2, … , n)
cj - increase in Z that would result from each unit increase in
level of activity j
bi - amount of resource i that is available for allocation to
activities
aij - amount of resource i consumed by each unit of activity j

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Standard form of LPP
Let there be m resources to be allocated to n activities.
The problem is to find the values of x1, x2, …, xn so as to

Maximize Z = c1x1+ c2x2+ …+ cnxn

subject to
a11x1+ a12x2+ …+ a1nxn ≤ b1
a21x1+ a22x2+ …+ a2nxn ≤ b2
.
.
am1x1+ am2x2+ …+ amnxn ≤ bm

where all x1, x2, …, xn are non-negative.

LPP is a powerful technique for dealing with the problems of allocating

limited resources among competing activities as well as other problems
having a similar mathematical formulation.

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Example 1.

A firm manufactures two types of products A and B and sells

them at a profit of Rs. 2 on type A and Rs. 3 on type B.
Each product is processed on two machines G and H. Type A
requires one minute of processing time on G and two minutes
on H; type B requires one minute on G and one minute on H.
The machine G is available for not more than 6 hours 40
minutes while machine H is available for 10 hours during any
working day.

Formulate the problem as a LPP.

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Continued…

Let, x1 = Number of products of type A.

x2 = Number of products of type B.
Maximize Z = 2x1 + 3x2
Subject to
x1 + x2 < 400
2x1 + x2 < 600
and x 1 , x2 > 0

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Example 2.
A glass company produces high-quality glass products, including
windows and glass doors. It has three plants. Aluminum frames and
hardware are made in Plant 1, wood frames are made in Plant 2 and
Plant 3 produces the glass and assembles the products. Two new
products having large sales potential are launched.

• Product 1: An 8-foot glass door with aluminum framing .

• Product 2: A 4 x 6 foot wood-framed window.

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Continued…

Product 1 requires some of the production

capacity in Plants 1 and 3, but none in Plant 2.
Product 2 needs only Plants 2 and 3.

As both the products would be competing

for the same production capacity in Plant 3,
it is not clear which mix of the two products
would be most profitable. The following
data were gathered to study this question.

2016 27
Continued…

Let, x1 = no. of batches of product 1 produced per week

x2 = no. of batches of product 2 produced per week
Z = total profit per week from producing these two
products
Maximize z = 3x1 + 5x2
Subject to
x1 < 4
2x2 < 12
3x1 + 2x2 < 18
x1, x2 > 0

2016 28
Example 3.
Evening shift resident doctors in a Govt. hospital work five consecutive
days and have two consecutive days off. Their five days of work can
start on any day of the week and the schedule rotates indefinitely. The
hospital requires the following minimum number of doctors working:

Sun. Mon. Tue. Wed. Thu. Fri. Sat.

35 55 60 50 60 50 45

No more than 40 doctors can start their five working days on the same
day. Formulate the general LP model to minimize the number of
doctors employed by the hospital.

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Continued…

Let xj (j = 1 to 7) be the number of doctors who start their duty

on jth day of the week.
Min. z = x1+ x2 + x3 + x4 + x5 + x6 + x7
s.t. x1 + x4 + x5 + x6 + x7 >= 35
x 1+ x 2 + x5 + x6 + x7 >= 55
x 1 + x2 + x3 + x6 + x7 >= 60
x1+ x2 + x3 + x4 + x7 >= 50
x1+ x2 + x3 + x4 + x5 >= 60
x2 + x3 + x4 + x5 + x6 >= 50
x3 + x4 + x5 + x6 + x7 >= 45
x1, x2 , x3 , x4 , x5 , x6 , x7 >=0

2016 30
Example 4. Advanta India Ltd.
The First Indian Multinational Seed Company with global footprint. Advanta
has leadership position in crops like Sunflower, Rice, Corn, Mustard, Cotton,
Vegetables etc. The Company has been established with the prime objective of
conducting research, development, production and marketing of superior high
yielding hybrid seeds of crops of national importance.
Advanta India Ltd. has 100 acre farm in its Sonepat division. In 1996, they
decided to produce vegetables, namely, tomatoes, lettuce & radishes. They can
sell all tomatoes, lettuce, or radishes they can raise. The price they can obtain
is Re. 1.00 per kg for tomatoes, Rs. 0.75 a head for lettuce, and Rs. 2.00 per kg
for radishes. The average yield per-acre is 2,000 kg of tomatoes, 3000 heads of
lettuces, and 1000 kgs of radishes. Fetilizer is available at Re. 0.50 per kg and
the amount required per acre is 100 kgs each for tomatoes and lettuce, 50 kgs
for radishes. Labour required for sowing, cultivating and harvesting per acre is
5 man-days for tomatoes and radishes, and 6 man-days for lettuce. A total of
400 man-days of labor are available at Rs. 20 per man-day.
Formulate this problem as a LP model to maximize the farm’s total profit.
2016 31
Continued…

Let the farmer decide x1, x2, x3 acre of his land to grow
tomatoes, lettuce and radishes respectively.

Maximize z = 1850x1 + 2080x2 + 1875x3

Subject to
x1 + x2 + x3 < 100
5x1 + 6x2 + 5x3 < 400
and x 1 , x2 , x3 > 0

2016 32
Example 5.

 A businessman has the option of investing his money in

two plans. Plan A guarantees that each rupee invested
will earn seventy paise a year hence, while plan B
guarantees that each rupee invested will earn two
rupees two year hence. In plan B, only investments for
periods that are multiples of two years are allowed.
The problem is how should he invest Rs. 10000 in
order to maximize the earnings at the end of three
years.
Formulate the problem as a LPP.

2016 33
Continued..

Let, a1 and b1 be the initial investment in 1st year in plan A and B ,

respectively. (1)
Return after one year = 1.7 a1.
Now, you can invest this return into a2 and b2 parts for plan A & B, resp.
(2)
Return after two year = 1.7a2 +3b1.

Invest this amount in year three in plan A only. (3)

Return after third year = 1.7 (1.7a2 +3b1 )+ 3 b2

Maximize total return: 1.7 (1.7a2 +3b1 )+ 3 b2

s.t. constraints (1)-(3)

and the non-negativity restriction.

2016 34
Case Study
Acme Manufacturing Company has contracted to deliver home windows over
the next 6 months. The demands for each month are 100, 250, 190, 140, 220,
and 110 units, respectively. Production cost per window varies from month to
month depending on the cost of labor, material, and utilities. Acme estimates
the production cost per window over the next 6 months to be $50, $45, $55,
$48, $52, and $50, respectively. To take advantage of the fluctuations in
manufacturing cost, Acme may elect to produce more than is needed in a given
month and hold the excess units for delivery in later months. This, however,
will incur storage costs at the rate of $8 per window per month assessed on
end-of-month inventory. Develop a linear program to determine the optimum
production schedule.

2016 35
Continued…

Decision variables
Let for i = 1 to 6
Xi = Number of units produced in month i
Ii = Inventory units left at the end of month i

x1 x2 x3 x4 x5 x6

I=0 I1 I2 I3 I4 I5 I6

100 250 190 140 220 110

2016 36
Continued..

Objective function:
Min (Total Prod. Cost + end-of-month inventory cost)

Constraints:
Beginning Inv.+ Prod. Amount - Ending Inv. = Demand

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Continued…

Min. z = 50x1+ 45x2 + 55x3 + 48x4 + 52x5 + 50x6

+ 8(I1+ I2 + I3 + I4 + I5 + I6)
Subject to x1 – I1 = 100 (Month 1)
I1 + x2 – I2 = 250 (Month 2)
I2 + x3 – I3 = 190 (Month 3)
I3 + x4 – I4 = 140 (Month 4)
I4 + x5 – I5 = 220 (Month 5)
I5 + x6 – I6 = 110 (Month 6)
xi, Ii > 0, for all i = 1,2,…, 6.

2016 38
Distributing Goods through a Distribution Network

 The Problem. The Distribution Unlimited Co. will be producing the same new
product at two different factories, and then the product must be shipped to two
warehouses, where either factory can supply either warehouse. The distribution
network available for shipping this product is shown in DN Fig. , where F1 and F2
are the two factories, W1 and W2 are the two warehouses, DC is a distribution
center. The amounts to be shipped from F1 and F2 are shown to their left, and the
amounts to be received at W1and W2 are shown to their right. Each arrow
represents a feasible shipping lane. Thus, F1can ship directly to W1 and has three
possible routes (F1->DC-> W2, F1->F2->DC->W2, and F1->W1->W2) for
shipping toW2. Factory F2 has just one route to W2 (F2->DC->W2) and one to W1
(F2->DC->W2->W1) .The cost per unit shipped through each shipping lane is
shown next to the arrow. Also shown next to F1->F2 and DC->W2 are the
maximum amounts that can be shipped through these lanes. The other lanes have
sufficient shipping capacity to handle everything these factories can send.
The decision to be made concerns how much to ship through each shipping
lane. The objective is to minimize the total shipping cost.

2016 39
Distributing Goods through a Distribution Network

2016 40
Distributing Goods through a Distribution Network

Minimize Z = 2XF1-F2 + 4XF1-DC + 9XF1-W1 + 3XF2-DC +XDC-W2 +3XW1-W2

+2XW2-W1
Subject to;
 5-Net flow constrains
 Amount shipped out - amount shipped in = required amount
 Upper bound constraints
 XF1-F2 <= 10, XDC-W2 <= 80
 Non-negativity constraints

 Answer: 0, 40, 10, 40, 80, 0, 20, $49000.

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 Graphical LP Solution

2016 42
 Graphical LP Solution

 Determination of the feasible solution space

 Determination of the optimal solution from among all the
feasible points in the solution space

2016 43
Graphical LP Solution

 In this method, we consider the inequations of the constraints

as equations and draw the lines corresponding to these
equations in a two dimensional plane and use the non-
negativity restrictions.
 These lines define the region of permissible values of the
variables.
 Then by trail and error method we find a point in this feasible
region whose co-ordinates will give the optimal value (max or
min).

2016 44
Graphical LP Solution

 Feasible solution: A set of values of the decision variables

x1, x2,…,xn which satisfies all the constraints and the
non-negativity restrictions, is called a feasible solution.
 Feasible region: The collection of all feasible solutions.
 Infeasible solution: A solution for which at least one constraint
is violated.
 Optimal solution: A feasible solution which in addition
optimizes the objective function is called the optimal
solution.

2016 45
Graphical LP Solution

 This point will be a corner (or extreme) point of the

feasible region.
 Therefore, either the extreme point need to be considered as
candidates for the optimal solution
or
the point can be found by translating the straight line given by
the objective function for some particular value of “z”,
through this region.

2016 46
Corner-point feasible solution: A solution that lies
at a corner of the feasible region

 Constraints that are expressed as linear inequalities

necessarily form a convex set.
 Given a linear objective function, regardless of its
inclination or direction of optimization, the optimal
solution will always include a corner point of a linear
convex set.
 Even if the feasible region is convex, the existence of a
curvilinear constraint allows for the possibility of a non-
corner point optimal solution

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Convex Set:

A feasible set is convex if the line segment between

every pair of feasible points falls entirely within the
feasible region.
That is, if x1, x2 be any two points of a convex set X, then the
convex combination
x = α x2 + (1- α) x1; 0 ≤ α ≤ 1
must also be in the set.

2016 48
Example 1. Graphical Solution: Revisit to Example 2

Maximize z = 3x1 + 5x2

Subject to
x1 < 4 I
2x2 < 12 II
3x1 + 2x2 < 18 III
x1, x2 > 0

2016 49
Graphical Solution

x2 I
A(0,6) B (2,6), Z* = 36
II

z
Feasible C(4,3)
Region

O(0,0) D(4,0) x1
2016
III 50
Example 2.

Consider the LPP:

Minimize z  2 x1  x2
Subject to the constraints
3 x1  x2  9
x1  x2  6
x1 , x2  0

2016 51
(0.9)
Feasible region

(0,6)

(0,0) (3,0) (6,0) 3 9

( , )
z minimum at 2 2
2016 52
Example 3. ( Infinite solution /
Alternative optimal solution)

Consider the LPP:

Minimize Z  x1  x2
Subject to the constraints
5 x1  9 x2  45
x1  x2  2
x2  4
x1 , x2  0
zmin  2

2016 53
Example 4. ( Unbounded Solution)

Consider the LPP:

Maximize Z  3x1  4 x2
Subject to the constraints
x1  x2  0
 x1  3 x2  3
x1 , x2  0

2016 54
Example 5. ( No Feasible Solution)

Consider the LPP:

Maximize Z  2 x1  3x2
Subject to the constraints
x1  x2  2
2 x1  2 x2  8
x1 , x2  0

2016 55
Example 6. ( Unbounded Region, but optimal
solution exist)

Consider the LPP:

Maximize Z  2 x1  x2
Subject to the constraints
x1  x2  1
x1  3
x1 , x2  0 Zmax (3,2)  4

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Duality and Sensitivity Analysis

2016 57
Duality in Linear Programming

 LP Problem consists of two forms

- Primal
- Dual

 Associated with every LPP (Primal Problem), there

is a LPP which is called its Dual Problem.
- One being a maximization problem and the
other a minimization problem.

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Primal to Dual conversion

Primal Problem

Maximize
Z = CX
Subject to Dual Problem
AX ≤ b,
X ≥ 0. Minimize
W = b'Y
Subject to
A'Y ≥ c',
Y ≥ 0.

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Primal to Dual conversion

 Number of variables in the dual is equal to the

number of constraints in the primal and vice-versa.
 The coefficients in the objective function of the
primal problem are the right hand sides of the
functional constraints in the dual problem.

 The right hand sides of the functional constraints in

the primal problem are the coefficients in the
objective function of the dual problem.

2016 60
  The coefficients of a variable in the functional
constraints of the primal problem are the
coefficients in a functional constraint of the dual
problem.
 The less than signs of the primal constraints
become greater than signs in the dual constraints.
 The variables in both the problems are non-
negative.

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Primal to Dual conversion

n
Maximize Z = c xj 1
j j

subject to
n

a
j 1
ij x j  bi for i  1, 2...., m

and x j  0 for j  1, 2...., n. m

Minimize W = b y
i 1
i i

Dual
Objective subject to
W
m

a
i 1
ij yi  c j for j  1, 2...., n

Primal
Objective Z
and yi  0 for i  1, 2...., m.

2016 62
Example 1. Wyndor Glass Co. example

Maximize z = 3x1 + 5x2

Subject to
x1 < 4 I
2x2 < 12 II
3x1 + 2x2 < 18 III

x1, x2 > 0

2016 63
Example 1. Dual Problem

Minimize W = 4y1 + 12y2 +18y3

Subject to
y1 +3y3 > 3 I
2y2 +2y3 > 5 II

y1, y2 , y3 > 0

2016 64
Example 2.

Maximize z = 1850x1 + 2080x2 + 1875x3

Subject to
x1 + x2 + x3 < 100
5x1 + 6x2 + 5x3 < 400
and x 1 , x2 , x3 > 0

2016 65
Why Duality is important in practice?

 Dual of the dual is primal.

 If x be any feasible solution of the primal and y be
any feasible solution of the dual, then
cx ≤ b'y.
 If x* is an optimal solution for the primal problem
and y* is an optimal solution for the dual problem,
then Dual
Objective
W
cx* = b'y*.

Primal
Objective Z

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Primal Problem Dual Problem Conclusion

 FS FS Finite optimal for both exists.

 NFS FS Dual objective function is

unbounded.

 FS NFS Primal objective function is

unbounded.

 NFS NFS No solution exists

2016 67
Economic Interpretation:

 Dual variables: the dual variable yi represents the worth per

unit (shadow price) of resource i.
We know that Z < W Dual
Objective

(Revenue) < (Worth of resources) W

n m
z= c x  b y
j 1
j j
i 1
i i w
Primal
Objective Z

i.e.; total revenue from all the activities is less than the worth of
the resources. Optimality occurs when the two quantities are
equal.

2016 68
 Dual Constraints:
m
We know that a
i 1
ij yi  c j

m (usage of resource i per unit of activity j )


i 1 ( worth per unit of resource i )

 revenue per unit of activity j

i.e.; the assigned cost of all the resources is needed to produce

one unit of activity j.

2016 69
Post Optimality and Sensitivity
Analysis

2016 70
  By sensitiveness we mean fulfillment of the
condition of optimality as well as
determining the limits of variations of these
parameters for the solution to remain optimal
feasible.

2016 71
Wyndor Glass Co.

Product 1 requires some of the production

capacity in Plants 1 and 3, but none in Plant 2.
Product 2 needs only Plants 2 and 3.

As both the products would be competing

for the same production capacity in Plant 3,
it is not clear which mix of the two products
would be most profitable. The following
data were gathered to study this question.

2016 72
 Wyndor Glass Co.

Let, x1 = no. of batches of product 1 produced per week

x2 = no. of batches of product 2 produced per week
Z = total profit per week from producing these two products

Maximize z = 3x1 + 5x2

Subject to
x1 < 4
2x2 < 12
3x1 + 2x2 < 18
x1, x2 > 0

2016 73
 Graphical Solution
x2 I
A(0,6) B (2,6), Z* = 36
II

Feasible C(4,3) z=36

Region
O(0,0) D(4,0) x1
2016
III 74
Shadow Price

 The shadow Price for resource i measures the

marginal value of this resource (i.e.) the rate
at which Z could be increased by slightly
increasing the amount of this resource.

2016 75
Solution by Simplex Method:
Optimal Table

Basic Coefficient of:

Iteration Variable Eq. Z x1 x2 x3 x4 x5 RHS Ratio
Z (0) 1 0 0 0 3/2 1 36 ---
x3 (1) 0 0 0 1 1/3 1/3 2 ---
2
x2 (2) 0 0 1 0 1/2 0 6 ---
x1 (3) 0 1 0 0 -1/3 1/3 2 ---

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Shadow Price (We can use Solver)

 Shadow price for resource 1:y1 = 0

 Shadow price for resource 2: y2 =3/2
 Shadow price for resource 3: y3 = 1

 b2 and b3 are sensitive parameters

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Objective Function Coefficient

Z= C1x1+ 5x2

 The optimal solution (x1*, x2*) remains

the same as long as the slope of this line
lies between the slopes of the binding
constraints. This gives a range for C1.

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  Initially, c1=3, c2 = 5, Z = 36.
 With c2 = 5, the allowable range for c1 is
0<= c1 <= 7.5.
 With c1 = 3, the allowable range for c2 is
c2 >= 2.

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Constraint Coefficient

 If a constraint is not a binding constraint any small

change in its aij coefficient does not change the
optimal solution and hence is not sensitive.
 As the aij values are determined by the technology
being used, the uncertainty in these values is
relatively less.

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