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Raheel Ahmed - OR Assignment 2

Sensitivity analysis is a technique used in operations research to assess how changes in input parameters affect the output of a mathematical model. It helps understand the behavior and robustness of the model. The primary purpose is to identify which variables have the most influence on the output. Sensitivity analysis is useful for decision-making, risk assessment, resource allocation, optimization, and model validation. It provides insights into the model and assists in enhancing the effectiveness and reliability of operations research.

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17 views3 pages

Raheel Ahmed - OR Assignment 2

Sensitivity analysis is a technique used in operations research to assess how changes in input parameters affect the output of a mathematical model. It helps understand the behavior and robustness of the model. The primary purpose is to identify which variables have the most influence on the output. Sensitivity analysis is useful for decision-making, risk assessment, resource allocation, optimization, and model validation. It provides insights into the model and assists in enhancing the effectiveness and reliability of operations research.

Uploaded by

Raheel Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Submitted by: Raheel Ahmed 12277


Submitted to: Sir Bakhtawar Baloch
Course: Operational Research
Assignment 2
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1. Briefly describe about sensitivity analysis and why It is useful in operation
research.

Sensitivity analysis is a technique used in operations research to assess the impact of changes in

input parameters or variables on the output or results of a mathematical model. It helps in

understanding the behavior and robustness of the model by examining how sensitive the output is

to variations in the input values.

Purpose:

The primary purpose of sensitivity analysis is to determine which variables or parameters have

the most significant influence on the model's output. It allows analysts to identify critical factors

and prioritize them for further investigation or decision-making. By exploring various scenarios

and testing different input values, sensitivity analysis provides insights into the relationships and

dependencies within the model.

Sensitivity analysis is particularly useful in operations research for several reasons:

a. Decision-making: Sensitivity analysis helps decision-makers understand the

consequences of different choices and evaluate the impact of uncertainties or risks. By

examining the sensitivity of the model to different variables, they can make more

informed decisions and develop robust strategies.

b. Risk assessment: Operations research often involves dealing with uncertain factors.

Sensitivity analysis enables analysts to quantify the impact of parameter variations on the

model's output. It helps in assessing the potential risks associated with different scenarios

and identifying critical areas that require attention.


c. Resource allocation: Sensitivity analysis aids in resource allocation by identifying the

variables or parameters that have the most significant impact on the output. By focusing

resources on these critical factors, organizations can optimize their operations and

achieve better performance.

d. Optimization: Sensitivity analysis can be used in optimization problems to determine the

sensitivity of the optimal solution to changes in the input parameters. It helps in

identifying the stability and reliability of the optimal solution and provides insights into

potential improvements.

e. Model validation: By conducting sensitivity analysis, researchers can validate the

robustness and accuracy of their models. It allows them to test the sensitivity of the

model's output against real-world data or observations and ensure that the model captures

the essential factors influencing the problem.

In summary, sensitivity analysis is a valuable tool in operations research as it provides a

systematic approach to understanding the relationships between input and output variables. It

assists in decision-making, risk assessment, resource allocation, optimization, and model

validation, ultimately enhancing the effectiveness and reliability of the research.

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