Special cases in LP Problem

▪ Alternative optima(multiple solutions)

▪ Unbounded solutions
▪ Non-existing(or infeasible solutions)
Alternative optima(multiple solutions)
Concept of binding constraint

9x1+5x2<=45
Alternative optima(multiple solutions)
Example
Unbounded solutions
Unbounded solutions
Non-existing(or infeasible solutions)
Topics we have covered so far
▪ Linear Programming overview
▪ Assumptions under LP
▪ Formulation of LP problem
▪ Solution by graphical method
▪ Solution by using Excel solver
▪ Special cases( Multiple, Unbounded and Infeasible solutions)
Example problem-7
Sensitivity analysis

Z = CX
AX <=b
 Sensitivity analysis

Model
Input Output
Sensitivity analysis
What is sensitivity analysis?
Why it is required?
Dual price/Shadow price
Feasibility range
Optimality range
The Essence of Sensitivity Analysis
▪ Sensitivity analysis
– Important part of most linear programming studies
– Purpose: determine effect on optimal solution if parameter value estimates
are incorrect
▪ Identify which parameters are most sensitive
– For non-sensitive parameters, determine range over which optimal solution
remains unchanged

15
Scenario-1:Changes in availability of resources

▪ i. Machine-1 capacity is increased from 8 hours to 9 hours

▪ Calculate the new optimum point and corresponding objective
value
X1=3.2
X2=1.6
Z=128
X1=3.2
X2=1.6
Z=128
Shadow price

Shadow price(Dual price): a unit increase(decrease) in resource will

increase revenue by $ 14.00
 Machine-1 Capacity at B &F

B(0,2.67): 0x2+2.67x1=2.67
F(8,0): 8x2+0x1 =16


2.67 hr < Machine-1 Capacity < 16 hr

Prod-1(hr) Prod-2(hr)
Machine-1 2 1
Machine-2 1 3
 Shadow price for machine-2
▪ Calculate the shadow price for machine-2
($ 2.00/hour)

Machine-2 Capacity at D & E

4hr <Machine-2 Capacity <24 hr

The computed limit for machine 1 & 2 are known as feasibility range
Dual price and economic decisions

1. If JOBCO can increase the capacity of both machines, which

machine should receive higher priority?
2. A suggestion is made to increase the capacities of machine-1 &2
at the additional cost of $ 10/ hr. Is this advisable?
3. If the capacity of machine-1 is increased from present 8 hrs to 13
hrs how will this increase impact the optimum revenue?
4. Suppose that the capacity of machine-1 is increased to 20 hours
Scenario-II: Changes in Objective Coefficients

▪ Will the optimum point change?

▪ Will the objective function value change?
Optimality range

▪ There is a range for the coefficients of the objective function that

will keep the optimum solution unchanged at C
Optimality range
Using excel solver for sensitivity analysis