Sensitivity Analysis and Interpretation of

Solution

Introduction to Sensitivity Analysis

Graphical Sensitivity Analysis
Introduction to Sensitivity Analysis

In the previous chapter we discussed:

objective function value
values of the decision variables

In this chapter we will discuss:

changes in the coefficients of the objective
function
changes in the right-hand side value of a
constraint
 Introduction to Sensitivity Analysis

Sensitivity analysis (or post-optimality analysis) is

used to determine how the optimal solution is
affected by changes, within specified ranges, in:
the objective function coefficients
the right-hand side (RHS) values
Sensitivity analysis is important to a manager who
must operate in a dynamic environment with
imprecise estimates of the coefficients.
Sensitivity analysis allows a manager to ask certain
what-if questions about the problem.
 Example 1
LP Formulation

Max 5x1 + 7x2

s.t. x1 < 6
2x1 + 3x2 < 19
x1 + x2 < 8

x1, x2 > 0
 x2
Example 1
Graphical Solution

8 x1 + x2 < 8
Max 5x1 + 7x2
7
6 x1 < 6
5
Optimal Solution:
4 x1 = 5, x2 = 3
3
2x1 + 3x2 < 19
2
1
x1

1 2 3 4 5 6 7 8 9 10
 Objective Function Coefficients

Let us consider how changes in the objective function

coefficients might affect the optimal solution.
The range of optimality for each coefficient provides
the range of values over which the current solution
will remain optimal.
Managers should focus on those objective
coefficients that have a narrow range of optimality
and coefficients near the endpoints of the range.
 Example 1
x2

Changing Slope of Objective Function

8 Coincides with
x1 + x2 < 8
7 constraint line

6 Objective function
5 line for 5x1 + 7x2
5
4 Coincides with
2x1 + 3x2 < 19
3 Feasible
Region constraint line
4
2
3
1
1 2 x1

1 2 3 4 5 6 7 8 9 10
 Range of Optimality

Graphically, the limits of a range of optimality are

found by changing the slope of the objective function
line within the limits of the slopes of the binding
constraint lines.
Slope of an objective function line, Max c1x1 + c2x2, is
-c1/c2, and the slope of a constraint, a1x1 + a2x2 = b, is
-a1/a2.
 Example 1
Range of Optimality for c1
The slope of the objective function line is -c1/c2. The slope
of the first binding constraint, x1 + x2 = 8, is -1 and the
slope of the second binding constraint, 2x1 + 3x2 = 19, is -
2/3.
Find the range of values for c1 (with c2 staying 7) such that
the objective function line slope lies between that of the
two binding constraints:
-1 < -c1/7 < -2/3
Multiplying through by -7 (and reversing the inequalities):
14/3 < c1 < 7
 Example 1
Range of Optimality for c2
Find the range of values for c2 ( with c1 staying 5) such
that the objective function line slope lies between that of
the two binding constraints:
-1 < -5/c2 < -2/3

Multiplying by -1: 1 > 5/c2 > 2/3

Inverting : 1 < c2/5 < 3/2

Multiplying by 5: 5 < c2 < 15/2

 Example 1
Summary of Range of Optimality for c1 and c2

14/3 < c1 < 7 or 4 2/3 < c1 < 7

Since the current value of c1 is 5, c1 is allowed to

increase by 2 and decrease by 1/3

5 < c2 < 15/2 or 5 < c2 < 7 1/2

Since the current value of c2 is 7, c2 is allowed to
increase by 1/2 and decrease by 2
 Reference

David R. Anderson [et.al]. (2008). Quantitative Methods for

Business. 11. SOWES. New York. ISBN: 10: 0324651813.

Bina Nusantara University

13
Bina Nusantara University
14