Maximize π = 20T +15C +15B

subject to 10T +3C +10B ≤100

5T + 5C + 5B ≤ 60
T, B,C ≥ 0
T* = 9 1/7 or 9.1429 ; C* = 2 6/7 or 2.8571; B* = 0
VOF (y*) = 225.7143

Min π =100y1 + 60y2

subject to 10y1 + 5y2 ≥ 20
3y1 + 5y2 ≥15
10y1 + 5y2 ≥15
y1, y2 ≥ 0
y1* = 5/7 or 0.7143 y2* = 18/7 or 2.5714
VOF (y*) = 225.7143
EXCHANGE COEFFICIENT
- units of one variable that must be given up to
accommodate an increase in another
10 y1 + 5 y2 ≥ 20 profit from table
3 y1 + 5 y2 ≥ 15 profit from chair

Surplus (table) Surplus (chair)

y1 1/7 -1/7
y2 -3/35 2/7
SENSITIVITY LIMITS

solution value
Exchange ratio =
exchange coefficient in surplus column

Surplus (table) Surplus (chair)

y1 1/7 -1/7
y2 -3/35 2/7

SensiIvity limits for profit from table constraint

Exchange Solution Exchange

coefficient value ratio
y1 1/7 5/7 5
y2 -3/35 18/7 -30
 Surplus (table) Surplus (chair)
y1 1/7 -1/7
y2 -3/35 2/7

SensiIvity limits for profit from chair constraint

Exchange Solution Exchange

coefficient value ratio
y1 -1/7 5/7 -5
y2 2/7 18/7 9
SENSITIVITY LIMITS

NO SURPLUS IN THE ORIGINAL SOLUTION

Lower constraint constant sensi@vity limit = Original level - smallest
posi@ve ra@o or -∞ (if no ra@o is posi@ve)

Upper constraint constant sensi@vity limit = Original level +

smallest absolute value of nega@ve ra@o or ∞ (if no ra@o is nega@ve)

SURPLUS IN THE ORIGINAL SOLUTION

Lower constraint constant sensi@vity limit = -∞

Upper constraint constant sensi@vity limit = Original level + solu@on
value of surplus
Table profit = [15, 50]
Chair profit = [6, 20]
Bookshelf profit = [-∞, 20]
Maximize π = 6x1 + 8x2
subject to 30x1 + 20x2 ≤ 300 (wood)
5x1 +10x2 ≤110 (labor)
x1, x2 ≥ 0

Minimize C = 300y1 +110y2

subject to 30y1 + 5y2 ≥ 6 (table)
20y1 +10y2 ≥ 8 (chair)
y1, y2 ≥ 0

y1* =1/10
y2 * = 6 /10
 SENSITIVITY ANALYSIS : CHANGE IN COEFFICIENT OF OBJECTIVE
VARIABLE

shadow price of variable

Improvement ratio =
exchange coefficient in variable row

VARIABLE IN THE ORIGINAL SOLUTION

Lower obj coefficient sensi@vity limit = Original level -
smallest posi@ve ra@o or -∞ (if no ra@o is posi@ve)
Upper obj coefficient sensi@vity limit = Original level +
smallest absolute value of nega@ve ra@o or ∞ (if no ra@o is nega@ve)
VARIABLE NOT IN THE ORIGINAL SOLUTION
Lower obj coefficient (max) sensi@vity limit = -∞
Upper obj coefficient (max) sensi@vity limit = Original level + absolute
size of the shadow price of the variable
 Slack (wood) Slack (labor)
x1 (tables) 1/20 -1/10
x2 (chairs) -1/40 3/20
SENSITIVITY LIMITS FOR OBJECTIVE COEFFICIENT OF x1
shadow price of variable
Improvement ratio =
exchange coefficient in variable row
Improvement ra@os for x1
1/10 6 /10
=2 = −6
1/ 20 −1/10
Lower obj coefficient sensi@vity limit = Original level -
smallest posi@ve ra@o or -∞ (if no ra@o is posi@ve)
Lower obj coefficient sensi@vity limit = 6 - 2 = 4
Upper obj coefficient sensi@vity limit = Original level +
smallest absolute value of nega@ve ra@o or ∞ (if no ra@o is nega@ve)
Upper obj coefficient sensi@vity limit = 6 + 6 = 12
 Slack (wood) Slack (labor)
x1 (tables) 1/20 -1/10
x2 (chairs) -1/40 3/20
SENSITIVITY LIMITS FOR OBJECTIVE COEFFICIENT OF x2
shadow price of variable
Improvement ratio =
exchange coefficient in variable row
Improvement ra@os for x2
1/10 6 /10
= −4 =4
−1/ 40 3/ 20
Lower obj coefficient sensi@vity limit = Original level -
smallest posi@ve ra@o or -∞ (if no ra@o is posi@ve)
Lower obj coefficient sensi@vity limit = 8 - 4 = 4
Upper obj coefficient sensi@vity limit = Original level +
smallest absolute value of nega@ve ra@o or ∞ (if no ra@o is nega@ve)
Upper obj coefficient sensi@vity limit = 8 + 4 = 12