Sensitivity Analysis

•Every Linear Programming problem is characterize by:

 Objective function
RHS value ( resources capacity )
Coefficient matrix

•In sensitivity analysis we will see what will

happen to the optimal solution if any of these
characteristic will change.
We will see:
•Change in objective function coefficient for a non basic
variable.

•Change in objective function coefficient for a basic variable

•If change in RHS value

•Change in constraint coefficient of non basic variable

•Adding a variable to the problem

•Add a constraint

•Constraint coefficient for a basic variable

Graphical sensitivity Analysis:
Two Cases:
•RHS value changes
•Coefficient of objective function changes

Example:

Machine 1

Machine 2
• If we change the daily capacity of machine 1 from 8 to 9 the new
optimum solution will move to G point
• The rate of change of optimum Z resulting from changing
machine 1 capacity by 1 hour

•Ie, unit increase in the capacity of machine 1 will increase

revenue by $ 14 .
• The name “ Unit worth of a resource” is an apt description of
the rate of change of the objective function per unit change of a
resource. Early LP developments have coined abstract name
Dual ( or shadow ) Price.

The conclusion is that the dual price 14 per hr will remain valid
in this range.
•Similarly for machine two range lies between 4 hr and 24 hr
with dual price $2 per hr.
•These ranges are called feasibility ranges.
Question: If we can increase the capacity of both the
machines, which machine should receive priority?

Question: If the capacity of M1 is increased from 8 hrs to 13hrs,

how will this impact on the optimum revenue?
( $ 14(13-8)= $ 70,
ie; revenue will increase by $70 from $128 to $ 198.)

Question: If we increase the capacity of M1 from 8 to 20 hrs ,

how will this increase the effect the optimum revenue?
( Further calculations required)
If we change the coefficient of objective function:
The slope of the objective function line will change but optimum
point C (intersection of the given constraint lines) will remain
same if:

These are called optimality ranges.

Algebraic Method:

4 3 5 0 0
Basis x1 x2 x3 x4 x5 RHS Θ
0 X4 1 2 3 1 0 9 3
0 X5 2 3 1 0 1 12 12
C-Z 4 3 5 0 0 0
5 X3 1/3 2/3 1 1/3 0 3 9
0 X5 5/3 7/3 0 -1/3 1 9 27/5
C-Z 7/3 -1/3 0 -5/3 0 15
5 X3 0 1/5 1 2/5 -1/5 6/5
4 X1 1 7/5 0 -1/5 3/5 27/5
0 -18/5 0 -8/5 -7/5 138/5
OPTIMAL
If there is a change in coefficient of objective function of non
basic variable:
•HERE non basic variable is X2
•Consider new coeff is C2 instead of 3
•This would not impact on the RHS ie
•If Cj- Zj comes out to be positive then present solution is no
more optimal

Present solution will remain optimum

•If C2 is 7 then C2-Z2 will turn out to be positive

4 7 5 0 0
x1 x2 x3 x4 X5 RHS θ
5 X3 0 1/5 1 2/5 -1/5 6/5 6
4 X1 1 7/5 0 -1/5 3/5 27/5 27/7
0 2/5 0 -8/5 -7/5 138/5
5 X3 -1/7 0 1 3/7 -2/7 3/7
7 x2 5/7 1 0 -1/7 3/7 27/7
-2/7 0 0 -8/7 -11/7 204/7

Hence New optimal solution is X3 = 3/7, X2 =27/7, Z =204/7

If there is a change in objective function coefficient of non
basic variable: ( Here X3 and X1)
• Consider change in X1 coefficient by C1
C1 7 5 0 0
x1 x2 x3 x4 X5 RHS θ
5 X3 0 1/5 1 2/5 -1/5 6/5 6
C1 X1 1 7/5 0 -1/5 3/5 27/5 27/7
0 2/5 0 -8/5 -7/5 138/5
•If C1 is such that all above three coefficient remain negative
then present solution is optimal
•Otherwise we should go for further calculations
If RHS value changes:

RHS =

•If b is such that both the coefficient of RHS are positive then
present solution is optimal.

•Otherwise this primal solution becomes infeasible and we

should go for dual simplex iteration.
Adding a new product:
Suppose we insert a new product X6.
Assume C is 6 in contribution of X6 in objective function.
Assume
Constraint Coefficient of Basic variable changes
(here x1 and X3)

Don’t perform sensitivity analysis , solve the whole problem

again , because basis will change.
maximize z= 3x1 +2x2 (profit= coeff * 1000)
subject to x1 + 2x2 <=6 (raw material A)
2x1 + x2 <=8 (raw material B)
-x1 + x2 <=1 (limit on demand)
x2<=2
x1,x2 >=0
 3 2 0 0 0 0
Basis x1 x2 x3 x4 x5 x6 RHS θ
0 x3 1 2 1 0 0 0 6 6
0 x4 2 1 0 1 0 0 8 4
0 x5 -1 1 0 0 1 0 1
0 x6 0 1 0 0 0 1 2
C-Z 3 2 0 0 0 0
0 x3 0 (3/2) 1 (-1/2) 0 0 2 (4/3)
3 x1 1 (1/2) 0 (1/2) 0 0 4 8
0 x5 0 (3/2) 0 (1/2) 1 0 5 (10/3
0 x6 0 1 0 0 0 1 2
Z 3 (3/2) 0 (3/2) 0 0 12
C-Z 0 (1/2) 0 (-3/2) 0 0
2 x2 0 1 (2/3) (-1/3) 0 0 (4/3)
3 x1 1 0 (-1/3) (2/3) 0 0 (10/3)
0 x5 0 0 -1 1 1 0 (3
0 x6 0 0 (-2/3) (1/3) 0 1 (2/3)
C-Z 0 0 (-1/3) (-4/3) 0 0 38/3`
• Hence X2=4/3
X1 = 10/3
x5 = 3
X6 = 2/3
Z = 38/3
 1. In next weeks production schedule, the production
department wants to divert 2 tons daily of raw material B to
another process, but will compensate for this reduction in B by
increasing the allocation of raw material A by 3 tons daily
x1 + 2x2 <=9 (raw material A)
2x1 + x2 <=6 (raw material B)
-x1 + x2 <=1 (limit on demand)
Basic x1 x2 x3 x4 x5 x6 solution
x2 0 1 2/3 -1/3 0 0 10/3
x1 1 0 -1/3 2/3 0 0 1/3
x5 0 0 -1 1 1 0 -2
x6 0 0 -2/3 1/3 0 1 -4/3
C-Z 0 0 -1/3 -4/3 0 0 38/3
θ 3 -ve - 0

Entering variable
Basic x1 x2 x3 x4 x5 x6 solution
x2 0 1 0 1/3 2/3 0 2
x1 1 0 0 1/3 -1/3 0 1
x3 0 0 1 -1 -1 0 2
x6 0 0 0 -1/3 -2/3 1 0
C-Z 0 0 0 -5/3 -1/3 0 7

HENCE optimum value are X2 =2, X1 =1, X3 =2, X6 =0, z =7

 2. The marketing department believes that over the next 6
months changes in the market conditions will increase their
market share of interior paint from a maximum of 2 tons to 3.5
tons daily.

x2<=3.5
Since all the elements of RHS are positive, so present
solution is optimal.
3. The R&D department discovered a new process that will
reduce usage of raw materials A and B per ton of exterior
paint from 1 and 2 tons, respectively, to 0.8 and 1.7tons

x1 + 2x2 <=6 (raw material A)

2x1 + x2 <=8 (raw material B)

0.8x1 + 2x2 <=6 (raw material A)

1.7x1 + x2 <=8 (raw material B)

Here we have converted the coefficient of basic variable, so we have to solve the
whole problem again because basis will change.
4. The finance department anticipates that competition for a
limited market will reduce the marginal profits of exterior and
interior paint to $2500 and S1500 per ton.

Here we have to change the coefficient of objective function.

maximize z= 3x1 + 2x2

maximize z= 2.5x1 +1.5x2

 2.5 1.5 0 0 0 0
x1 x2 x3 x4 x5 X6 RHS θ
1.5 x2 0 1 (2/3) (-1/3) 0 0 (4/3)
2.5 x1 1 0 (-1/3) (2/3) 0 0 (10/3)
0 x5 0 0 -1 1 1 0 (3
0 x6 0 0 (-2/3) (1/3) 0 1 (2/3)
C-Z 0 0 (-1/3) (-4/3) 0 0 38/3`

C3-Z3= 0 – [(1.5*2/3)+(2.5*(-1/3))] = (-.16667)

C4- Z4 = 0- [ ((-1/3)*1.5)+(2/3*2.5)]= (-1.667)
C5-Z5 = 0
Optimum solution obtained because all Cj-Zj are either
Z = 10.333 zero or negative.
 5. The OR analyst after analyzing the sales records over the past
year, discovered that the market never absorbed more than 3
tons of exterior paint daily. He thus believes that the Reddy
Mikks market share of exterior paint cannot exceed 3 tons daily.

Here we have introduced a constraint

x1<= 3

From optimum solution we get x1 is 10/3 which is not satisfying this above constraint
so we have to proceed further.
Now we can find the value of x1 from the optimal table which is :
After putting this value of x1 in given constraint we obtained:

3 2 0 0 0 0
x1 x2 x3 x4 x5 x6 X7 RHS
2 x2 0 1 (2/3) (-1/3) 0 0 0 (4/3)
3 x1 1 0 (-1/3) (2/3) 0 0 0 (10/3)
0 x5 0 0 -1 1 1 0 0 (3
0 x6 0 0 (-2/3) (1/3) 0 1 0 (2/3)
0 x7 0 0 -1/3 (2/3) 0 0 1 1/3
C-Z 0 0 (-1/3) (-4/3) 0 0 38/3`

Positive
Due to this positive value there is no need to solve further . Our present
solution is optimal solution.
 6. The marketing department is toying with the idea of
introducing a cheaper brand of exterior paint to satisfy a
certain segment of the market.