CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution

True / False

1. Classical sensitivity analysis provides no information about changes resulting from a change in the coefficient of a
variable in a constraint.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.04 - 3.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.4 Limitations of Classical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

2. The reduced cost of a variable is the dual value of the corresponding nonnegativity constraint.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

3. When the right-hand sides of two constraints are each increased by one unit, the objective function value will be
adjusted by the sum of the constraints' dual prices.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

4. If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the
amount of the resource can increase to 25.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Apply

5. When two or more objective function coefficients are changed simultaneously, further analysis is necessary to
determine whether the optimal solution will change.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

6. The dual value and dual price are identical for a minimization problem.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.A3.02 - A3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: Appendix 3.2 Sensitivity Analysis with Lingo
KEYWORDS: Bloom's: Understand

7. A negative dual price indicates that increasing the right-hand side of the associated constraint would be detrimental to
the objective.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

8. In order to tell the impact of a change in a constraint coefficient, the change must be made and then the model resolved.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
LEARNING OBJECTIVES: IMS.ASWC.19.03.04 - 3.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.4 Limitations of Classical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

9. A small change in the objective function coefficient can necessitate modifying the optimal solution.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

10. The dual price associated with a constraint is the change in the value of the solution per unit decrease in the right-hand
side of the constraint.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Remember

11. For a minimization problem, a positive dual price indicates the value of the objective function will increase.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

12. There is a dual price for every decision variable in a model.

a. True
b. False
ANSWER: False
POINTS: 1

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

13. The amount of a sunk cost will vary depending on the values of the decision variables.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

14. If the optimal value of a decision variable is zero and its reduced cost is zero, this indicates that alternative optimal
solutions exist.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.A3.01 - A3.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: Appendix 3.1 Sensitivity Analysis with Excel Solver
KEYWORDS: Bloom's: Understand

15. Relevant costs should be reflected in the objective function, but sunk costs should not.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

16. If the range of feasibility for b1 is between 16 and 37, then if b1 = 22, the optimal solution will not change from the
original optimal solution.
a. True
b. False
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Apply

17. If the dual price for the right-hand side of a ≤ constraint is zero, there is no upper limit on its range of feasibility.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

18. Increasing the right-hand side of a nonbinding constraint will not cause a change in the optimal solution.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

19. If two or more objective function coefficients are changed simultaneously, further analysis is necessary to determine
whether the optimal solution will change.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

Multiple Choice

20. To solve a linear programming problem with thousands of variables and constraints,
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
a. a personal computer can be used.
b. a mainframe computer is required.
c. the problem must be partitioned into
subparts.
d. unique software would need to be developed.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
3.1 Introduction to Sensitivity Analysis
KEYWORDS: Bloom's: Remember

21. A negative dual price for a constraint in a minimization problem means

a. as the right-hand side increases, the objective function value will increase.
b. as the right-hand side decreases, the objective function value will increase.
c. as the right-hand side increases, the objective function value will decrease.
d. as the right-hand side decreases, the objective function value will
decrease.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.A3.02 - A3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: Appendix 3.2 Sensitivity Analysis with Lingo
KEYWORDS: Bloom's: Understand

22. If a decision variable is not positive in the optimal solution, its reduced cost is
a. what its objective function value would need to be before it could become positive.
b. the amount its objective function value would need to improve before it could become
positive.
c. zero.
d. its dual price.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

23. A constraint with a positive slack value

a. will have a positive dual price.
b. will have a negative dual price.
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
c. will have a dual price of zero.
d. has no restrictions for its dual
price.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

24. The amount by which an objective function coefficient can change before a different set of values for the decision
variables becomes optimal is the
a. optimal solution.
b. dual solution.
c. range of optimality.
d. range of feasibility.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Remember

25. The range of feasibility measures

a. the right-hand-side values for which the objective function value will not change.
b. the right-hand-side values for which the values of the decision variables will not
change.
c. the right-hand-side values for which the dual prices will not change.
d. All of these are correct.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Remember

26. An objective function reflects the relevant cost of labor hours used in production rather than treating them as a sunk
cost. The correct interpretation of the dual price associated with the labor hours constraint is the
a. maximum premium (say for overtime) over the normal price that the company would be willing to pay.
b. upper limit on the total hourly wage the company would pay.
c. reduction in hours that could be sustained before the solution would change.
d. number of hours by which the right-hand side can change before there is a change in the solution point.
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

27. The graphical solution procedure is useful only for linear programs involving
a. two decision variables.
b. more than two decision variables.
c. a single constraint.
d. None of these are correct.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

28. An improvement in the value of the objective function per unit increase in a right-hand side is the
a. sensitivity value.
b. constraint coefficient.
c. slack value.
d. None of these are
correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

29. The amount the objective function coefficient of a decision variable would have to improve before that variable would
have a positive value in the solution is the
a. dual price.
b. surplus variable.
c. reduced cost.
d. upper limit.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Remember

30. Based on the per-unit increase in the right-hand side of the constraint, the dual price measures the
a. increase in the value of the optimal solution.
b. decrease in the value of the optimal solution.
c. improvement in the value of the optimal solution.
d. change in the value of the optimal solution.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.A3.02 - A3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: Appendix 3.2 Sensitivity Analysis with Lingo
KEYWORDS: Bloom's: Remember

31. Sensitivity analysis information in computer output is based on the assumption that
a. no coefficient changes.
b. one coefficient changes.
c. two coefficients change.
d. all coefficients change.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.04 - 3.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.4 Limitations of Classical Sensitivity Analysis
KEYWORDS: Bloom's: Remember

32. When the cost of a resource is sunk, then the dual price can be interpreted as the
a. minimum amount the firm should be willing to pay for one additional unit of the resource.
b. maximum amount the firm should be willing to pay for one additional unit of the resource.
c. minimum amount the firm should be willing to pay for multiple additional units of the resource.
d. maximum amount the firm should be willing to pay for multiple additional units of the
resource.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution

33. Which of the following is NOT a question answered by standard sensitivity analysis information?
a. If the right-hand-side value of a constraint changes, will the objective function value change?
b. Over what range can a constraint's right-hand-side value change without the constraint's dual price possibly
changing?
c. By how much will the objective function value change if the right-hand-side value of a constraint changes
beyond the range of feasibility?
d. By how much will the objective function value change if a decision variable's coefficient in the objective
function changes within the range of optimality?
ANSWER: c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Understand

34. The cost that varies depending on the values of the decision variables is a
a. reduced cost.
b. relevant cost.
c. sunk cost.
d. dual cost.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Remember

35. A cost that is incurred no matter what values the decision variables assume is a(n)
a. reduced cost.
b. optimal cost.
c. sunk cost.
d. dual cost.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.3 Sensitivity Analysis: Computer Solution
KEYWORDS: Bloom's: Remember

36. Sensitivity analysis is sometimes referred to as

a. feasibility testing.
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
b. duality analysis.
c. alternative analysis.
d. postoptimality
analysis.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.01 - 3.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.1 Introduction to Sensitivity Analysis
KEYWORDS: Bloom's: Remember

37. Sensitivity analysis is concerned with how certain changes affect the
a. feasible solution.
b. unconstrained solution.
c. optimal solution.
d. degenerative solution.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.01 - 3.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.1 Introduction to Sensitivity Analysis
KEYWORDS: Bloom's: Remember

38. The dual price for a < constraint will

a. always be < 0.
b. always be > 0.
c. be < 0 in a minimization problem and > 0 in a maximization
problem.
d. always equal 0.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Understand

Subjective Short Answer

39. In a linear programming problem, the binding constraints for the optimal solution are:

5X + 3Y ≤ 30
2X + 5Y ≤ 20
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
a. Fill in the blanks in the following sentence:
As long as the slope of the objective function stays between _______ and _______, the
current optimal solution point will remain optimal.
b. Which of these objective functions will lead to the same optimal solution?
(1) 2X + 1Y (2) 7X + 8Y (3) 80X + 60Y (4) 25X + 35Y

ANSWER:
a. −5/3 and −2/5
b. objective functions (2), (3), and (4)
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Analyze

40. The optimal solution of this linear programming problem is at the intersection of constraints 1 and 2.

Max 2x1 + x2
s.t. 4x1 + 1x2 ≤ 400
4x1 + 3x2 ≤ 600
1x1 + 2x2 ≤ 300
x1, x2 ≥ 0

a. Over what range can the coefficient of x1 vary before the current solution is no longer
optimal?
b. Over what range can the coefficient of x2 vary before the current solution is no longer
optimal?
c. Compute the dual prices for the three constraints.

ANSWER:
a. 1.33 ≤ c1 ≤ 4
b. 0.5 ≤ c2 ≤ 1.5
c. Dual prices are 0.25, 0.25, and 0.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Analyze

41. The binding constraints for this problem are the first and second.

Min x1 + 2x2

s.t. x1 + x2 ≥ 300
2x1 + x2 ≥ 400

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
2x1 + 5x2 ≤ 750
x1, x2 ≥ 0

a. Keeping c2 fixed at 2, over what range can c1 vary before there is a change in the optimal
solution point?
b. Keeping c1 fixed at 1, over what range can c2 vary before there is a change in the optimal
solution point?
c. If the objective function becomes Min 1.5x1 + 2x2, what will be the optimal values of x1, x2,
and the objective function?
d. If the objective function becomes Min 7x1 + 6x2, what constraints will be binding?
e. Find the dual price for each constraint in the original problem.

ANSWER:
a. 0.8 ≤ c1 ≤ 2
b. 1 ≤ c2 ≤ 2.5
c. x1 = 250, x2 = 50, z = 475
d. Constraints 1 and 2 will be binding.
e. Dual prices are 0.33, 0, and 0.33. (The first and third values are negative.)
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.2 Graphical Sensitivity Analysis
KEYWORDS: Bloom's: Analyze

42. Excel's Solver tool has been used in the spreadsheet below to solve a linear programming problem with a
maximization objective function and all ≤ constraints.

Input Section

Objective Function Coefficients

X Y
4 6

Constraints Avail.
#1 3 5 60
#2 3 2 48
#3 1 1 20

Output Section

Variables 13.333333 4
Profit 53.333333 24 77.333333

Constraint Usage Slack

#1 60 1.789E-11
#2 48 -2.69E-11
#3 17.333333 2.6666667

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution

a. Give the original linear programming problem.

b. Give the complete optimal solution.
ANSWER:
a. Max 4X + 6Y
s.t. 3X + 5Y ≤ 60
3X + 2Y ≤ 48
1X + 1Y ≤ 20
X, Y ≥ 0
b. The complete optimal solution is X = 13.333, Y = 4, Z = 73.333, S1 = 0, S2 = 0, S3 =
2.667
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.A3.01 - A3.1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Appendix 3.1 Sensitivity Analysis with Excel Solver
KEYWORDS: Bloom's: Analyze

43. Excel's Solver tool has been used in the spreadsheet below to solve a linear programming problem with a
minimization objective function and all ≥ constraints.

Input Section

Objective Function Coefficients

X Y
5 4

Constraints Req'd
#1 4 3 60
#2 2 5 50
#3 9 8 144

Output Section

Variables 9.6 7.2

Profit 48 28.8 76.8

Constraint Usage Slack

#1 60 1.35E-11
#2 55.2 -5.2
#3 144 -2.62E-11

a. Give the original linear programming problem.

b. Give the complete optimal solution.
ANSWER:
a. Min 5X + 4Y
s.t. 4X + 3Y ≥ 60
2X + 5Y ≥ 50
9X + 8Y ≥ 144
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
X, Y ≥ 0
b. The complete optimal solution is X = 9.6, Y = 7.2, Z = 76.8, S1 = 0, S2 = 5.2, S3 = 0
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.A3.01 - A3.1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Appendix 3.1 Sensitivity Analysis with Excel Solver
KEYWORDS: Bloom's: Analyze

44. Use the spreadsheet and Excel Solver sensitivity report to answer these questions.
a. What is the cell formula for B12?
b. What is the cell formula for C12?
c. What is the cell formula for D12?
d. What is the cell formula for B15?
e. What is the cell formula for B16?
f. What is the cell formula for B17?
g. What is the optimal value for x1?
h. What is the optimal value for x2?
i. Would you pay $0.50 each for up to 60 more units of resource 1?
Is it possible to figure the new objective function value if the profit on product 1 increases by
j.
a dollar, or do you have to rerun Solver?

A B C D E
1
2 Input Information
3 Var. 1 Var. 2 (type) Avail.
4 Constraint 1 2 5 < 40
5 Constraint 2 3 1 < 30
6 Constraint 3 1 1 > 12
7
8 Profit 5 4
9
10 Output Information
11 Variables
12 Profit = Total
13
14 Resources Used Slack/Surplus
15 Constraint 1
16 Constraint 2
17 Constraint 3
18
19

Sensitivity Report

Changing Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
$B$12 Variable 1 8.461538462 0 5 7 3.4
$C$12 Variable 2 4.615384615 0 4 8.5 2.333333333

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
constraint 1
$B$15 40 0.538461538 40 110 7
Used
constraint 2
$B$16 30 1.307692308 30 30 4.666666667
Used
constraint 3
$B$17 13.07692308 0 12 1.076923077 1E+30
Used

ANSWER:
a. =B8*B11
b. =C8*C11
c. =B12+C12
d. =B4*B11+C4*C11
e. =B5*B11+C5*C11
f. =B6*B11+C6*C11
g. 8.46
h. 4.61
i. yes
j. no
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.A3.01 - A3.1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: Appendix 3.1 Sensitivity Analysis with Excel Solver
KEYWORDS: Bloom's: Evaluate

45. A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult
Open Trail, the adult Cityscape, the girl's Sea Sprite, and the boy's Trail Blazer. It is assumed that every bike ordered will
be sold, and their profits, respectively, are 30, 25, 22, and 20. The LP model should maximize profit. The store needs to
worry about several conditions. One of these is space to hold the inventory. An adult's bike needs two feet, but a child's
bike needs only one foot. The store has 500 feet of space. There are 1200 hours of assembly time available. The child's
bikes need 4 hours of assembly time, the Open Trail needs 5 hours, and the Cityscape needs 6 hours. The store would like
to place an order for at least 275 bikes.
a. Formulate a model for this problem.
b. Solve your model with any computer package available to you.
c. How many of each kind of bike should be ordered, and what will the profit be?
d. What would the profit be if the store had 100 more feet of storage space?
e. If the profit on the Cityscape increases to 35, will any of the Cityscape bikes be ordered?
f. Over what range of assembly hours is the dual price applicable?
If we require 5 more bikes in inventory, what will happen to the value of the optimal
g.
solution?
h. Which resource should the company work to increase, inventory space or assembly time?

ANSWER: NOTE TO INSTRUCTOR: This problem is suitable for a take-home or lab exam. The
student must formulate the model, solve the problem with a computer package, and then
interpret the solution to answer the questions.
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution

a. MAX 30 X1 + 25 X2 + 22 X3 + 20 X4
SUBJECT TO
2) 2 X1 + 2 X2 + X3 + X4 <= 500
3) 5 X1 + 6 X2 + 4 X3 + 4 X4 <= 1200
4) X1 + X2 + X3 + X4 >= 275

b. OBJECTIVE FUNCTION VALUE

1) 6850.0000
VARIABLE VALUE REDUCED COST
X1 100.000000 0.000000
X2 0.000000 13.000000
X3 175.000000 0.000000
X4 0.000000 2.000000
SLACK OR
ROW DUAL PRICE
SURPLUS
2) 125.000000 0.000000
3) 0.000000 8.000000
4) 0.000000 −10.000000
NO. ITERATIONS= 2

RANGES IN WHICH THE BASIS IS UNCHANGED:

OBJ. COEFFICIENT
RANGES
CURRENT ALLOWABLE ALLOWABLE
VARIABLE
COEFFICIENT INCREASE DECREASE
X1 30.000000 INFINITY 2.500000
X2 25.000000 13.000000 INFINITY
X3 22.000000 2.000000 2.000000
X4 20.000000 2.000000 INFINITY
RIGHTHAND SIDE
RANGES
CURRENT ALLOWABLE ALLOWABLE
ROW RHS INCREASE DECREASE
2 500.000000 INFINITY 125.000000
3 1200.000000 125.000000 100.000000
4 275.000000 25.000000 35.000000

c. Order 100 Open Trails, 0 Cityscapes, 175 Sea Sprites, and 0 Trail Blazers. Profit will be
6850.
d. 6850
e. No. The $10 increase is below the reduced cost.
f. 1100 to 1325
g. It will decrease by 50.
h. assembly time

POINTS: 1
DIFFICULTY: Challenging
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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
LEARNING OBJECTIVES: IMS.ASWC.19.03.05 - 3.5
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 3.5 The Electronic Communications Problem
KEYWORDS: Bloom's: Analyze

46. Consider the following linear program:

Max 5x1 + 7x2

s.t. x1 ≤ 6
2x1 + 3x2 ≤ 19
x1 + x2 ≤ 8
x1, x2 ≥ 0
The graphical solution to the problem is shown below. From the graph, we see that the optimal solution occurs at x1 = 5,
x2 = 3, and z = 46.

a. Calculate the range of optimality for each objective function coefficient.

b. Calculate the dual price for each resource.
ANSWER:
a. Ranges of optimality: 14/3 ≤ c1 ≤ 7 and 5 ≤ c2 ≤ 15/2
The dual price for the first resource is 0, for the second resource is 2, and for the third is
b.
1.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.03.01 - 3.1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
© Cengage. Testing Powered by Cognero. Page 18
CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution
TOPICS: 3.1 Introduction to Sensitivity Analysis
KEYWORDS: Bloom’s: Analyze

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