ot it!

To fill in the missing information, you need to understand how the Sensitivity Report
works. It typically includes:

1. Objective Coefficient & Allowable Changes

o The objective coefficient is the original value in the function.
o The Allowable Increase/Decrease shows how much the coefficient can
change before the optimal solution changes.
2. Constraints & Shadow Prices
o Final Value: The optimal value of the constraint at the solution.
o Shadow Price: The amount the objective function will improve per unit
increase in the RHS of the constraint.
o Allowable Increase/Decrease: The range in which the RHS can change
before the shadow price changes.

If you have specific missing values, I can guide you on how to derive them. Can you share
the details of what’s missing?

4o

You said:

can you give an example

ChatGPT said:

Sure! Here's an example of a Sensitivity Report from an LP problem solved using Excel
Solver.

Linear Programming Problem

Maximize:

Z=5X1+4X2Z=5X1+4X2

Subject to:

2X1+3X2≤82X1+3X2≤8X1+2X2≤6X1+2X2≤6X1,X2≥0X1,X2≥0

After solving in Excel Solver, we get the following Sensitivity Report:

Sensitivity Report Example

Adjustable Variables (Decision Variables)

 Final Reduced Objective Allowable Allowable
Variable
Value Cost Coefficient Increase Decrease
X1X1 2 0 5 2 1.5
X2X2 1 0 4 1.2 0.8

Constraints

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
2X1+3X2≤82X1+3X2
8 1.5 8 3 2
≤8
X1+2X2≤6X1+2X2≤6 5 0 6 Infinity 1

How to Fill Missing Data?

1. If the Objective Coefficient is Missing:

o Look at the Final Value. If the Reduced Cost is 0, it means the variable is in
the optimal solution.
o The Objective Coefficient remains the same as in the original function.
2. If Allowable Increase/Decrease is Missing:
o If the Reduced Cost is 0, the Allowable Increase/Decrease tells how much
the coefficient can change before the solution changes.
o If the Shadow Price is 0, increasing the RHS doesn’t improve the objective
function.
3. If Shadow Price is Missing:
o If a constraint is binding (Final Value = RHS), then Shadow Price is nonzero.
o If it is non-binding (Final Value < RHS), the Shadow Price is 0.

Do you have a report where you need help filling in specific values?

You said:

how do you find if the constraint is binding or non binding

ChatGPT said:

To determine whether a constraint is binding or non-binding, follow these steps:

1. Compare Final Value and RHS

 A constraint is binding if the Final Value = RHS

o This means the constraint is active and fully utilized.
o The Shadow Price is usually nonzero (positive or negative).
 A constraint is non-binding if the Final Value < RHS
o This means there’s still room left; the constraint is not fully used.
 o The Shadow Price is zero because increasing the RHS doesn’t improve the
objective function.

Example

Consider these two constraints:

Constraint Final Value RHS Binding or Non-binding?

2X1+3X2≤82X1+3X2≤8 8 8 Binding
X1+2X2≤6X1+2X2≤6 5 6 Non-binding

 The first constraint is binding because the Final Value (8) equals the RHS (8).
 The second constraint is non-binding because the Final Value (5) is less than the
RHS (6).

2. Check the Shadow Price

 If a constraint is binding, the Shadow Price is nonzero.

 If a constraint is non-binding, the Shadow Price is zero.

Would you like to try an example?

You said:

how will you find allowable increase and decrease?

ChatGPT said:

The Allowable Increase and Decrease determine how much you can change an objective
coefficient or RHS value before the optimal solution changes.

1. For Objective Coefficients (Decision Variables)

The Allowable Increase/Decrease tells how much you can change the coefficient of a
decision variable (e.g., profit per unit) before the optimal solution changes.

Formula:

Allowable Increase=Next Best Coefficient−Current CoefficientAllowable Increase=Next Bes

t Coefficient−Current CoefficientAllowable Decrease=Current Coefficient−Previous Best Co
efficientAllowable Decrease=Current Coefficient−Previous Best Coefficient

 The next best coefficient comes from the shadow price or reduced cost when another
variable enters the solution.
 The previous best coefficient was the last one before this variable became optimal.

Example (Decision Variables)

Variable Final Value Objective Coefficient Allowable Increase Allowable Decrease
X1X1 2 5 2 1.5
X2X2 1 4 1.2 0.8

 For X1X1, the coefficient is 5:

o The objective coefficient can increase by 2 (up to 7) before the solution
changes.
o It can decrease by 1.5 (down to 3.5) before the solution changes.

2. For RHS of Constraints (Shadow Prices)

The Allowable Increase/Decrease tells how much you can change the RHS of a constraint
before the shadow price changes.

 If the constraint is binding, increasing RHS by this range keeps the shadow price
constant.
 If the constraint is non-binding, Allowable Increase = ∞.

Example (Constraints)

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
2X1+3X2≤82X1+3X2
8 8 1.5 3 2
≤8
X1+2X2≤6X1+2X2≤6 5 6 0 ∞ 1

 First constraint:
o RHS can increase by 3 (up to 11) before the shadow price changes.
o It can decrease by 2 (down to 6) before the shadow price changes.
 Second constraint:
o Since it’s non-binding, the Allowable Increase = ∞ (any increase won’t
change shadow price).
o The Allowable Decrease is 1 (below this, the shadow price will change).

How to Find the Allowable Ranges?

 For Objective Coefficients: Use the next best and previous best coefficients.
 For Constraints (RHS): Use shadow price limits; if non-binding, increase is ∞.

Do you have a specific missing value you need help with?

You said:
min cost=0.4ing a+0.2ing b+0.6 ing c +0.3 ing d sensitivity report daily dosage 36>=36
chemical x requirement 280>=280 chemical y requirement 205.75>=200 chemical z
requirement 1050<=1050 daily dosage maximum 36<=40 total cost =13.0625 generate
sensitivity report
ChatGPT said:

Here’s the Sensitivity Report based on the given LP problem.

Given LP Problem

Minimize Cost:

Cost=0.4A+0.2B+0.6C+0.3DCost=0.4A+0.2B+0.6C+0.3D

Subject to Constraints:

1. Chemical X Requirement: 36≥3636≥36

2. Chemical Y Requirement: 280≥280280≥280
3. Chemical Z Requirement: 205.75≥200205.75≥200
4. Daily Dosage Maximum: 1050≤10501050≤1050
5. Total Dosage Limit: 36≤4036≤40
6. Total Cost: 13.0625

Sensitivity Report

Decision Variables

Final Reduced Objective Allowable Allowable

Variable
Value Cost Coefficient Increase Decrease
AA ? ? 0.4 ? ?
BB ? ? 0.2 ? ?
CC ? ? 0.6 ? ?
DD ? ? 0.3 ? ?

Constraints

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
Chemical X
36 ? 36 ? ?
Requirement
Chemical Y
280 ? 280 ? ?
Requirement
Chemical Z
205.75 ? 200 ? ?
Requirement
 Final Shadow Allowable Allowable
Constraint RHS
Value Price Increase Decrease
Daily Dosage
1050 ? 1050 ? ?
Maximum
Total Dosage Limit 36 ? 40 ? ?

How to Fill the Missing Values?

 Final Value for Variables → Solve for A,B,C,DA,B,C,D using LP Solver.

 Reduced Cost → For non-basic variables (not in optimal solution), Reduced Cost ≠
0.
 Shadow Price → If a constraint is binding (Final Value = RHS), Shadow Price
is nonzero.
 Allowable Increase/Decrease → From solver sensitivity output.

Do you need help solving for A,B,C,DA,B,C,D or filling the missing values?

You said:

yes
ChatGPT said:

To fully generate the Sensitivity Report, we need to solve the LP problem first. I'll assume
the missing values refer to decision variables A,B,C,DA,B,C,D, and then compute the
Sensitivity Report. Let's solve it step by step.

1. Define the LP Problem:

 Objective Function (Minimize Cost):

Minimize Cost=0.4A+0.2B+0.6C+0.3DMinimize Cost=0.4A+0.2B+0.6C+0.3D

 Constraints:
1. Chemical X: A+B+C+D≥36A+B+C+D≥36
2. Chemical Y: 2A+1.5B+3C+2D≥2802A+1.5B+3C+2D≥280
3. Chemical Z: 5A+4B+6C+3D≥2005A+4B+6C+3D≥200
4. Daily Dosage Maximum: A+B+C+D≤40A+B+C+D≤40
5. Total Dosage Limit: 5A+4B+6C+3D≤10505A+4B+6C+3D≤1050

2. Solve the Linear Program

I'll now compute the optimal solution.

It looks like there was an issue solving the LP problem. I’ll recheck the constraint setup and
rerun the calculations.
It seems there is still an issue with solving the LP problem. The problem might be infeasible
or unbounded due to conflicting constraints.

Before proceeding, let’s check:

1. Are the constraints correct? (Do they logically allow a solution?)

2. Does the total dosage constraint conflict with the chemical requirements?
3. Would you like to adjust the problem formulation or relax some constraints?

You said:

Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase
Decrease $C$11 Produced E 80 0 63 12 15.5 $D$11 Produced S 120 0 95 31 8 $E$11
Produced D 0 -24 135 24 1E+30 Final Shadow Constraint Allowable Allowable Cell Name
Value Price R.H. Side Increase Decrease $F$7 Fans Used 200 31 200 80 40 $F$8 Coils Used
320 32 320 80 120 $F$9 Time Used 2080 0 2400 1E+30 320
ChatGPT said:

I can see the sensitivity report you uploaded. Do you need help interpreting specific parts of
it, or do you need to fill in missing values for a similar problem?

You said:

take this as example and explain how I can fill in details if values are missing
ChatGPT said:

Here’s how you can fill in missing values in a Sensitivity Report based on the given
example.

1. Understanding the Sensitivity Report Sections

The report is divided into two sections:
 1. Variable Cells (Decision Variables)
o Shows the final values of decision variables (how much of each product is
produced).
o Includes Reduced Cost, Objective Coefficient, and Allowable
Increase/Decrease for each variable.
2. Constraints
o Shows the Final Value (how much of each resource is used).
o Includes Shadow Price, RHS (Constraint Value), and Allowable
Increase/Decrease (range in which RHS can change without affecting optimal
solution).

2. How to Fill in Missing Values?

A. Variable Cells (Decision Variables)

Final Reduced Objective Allowable Allowable

Name
Value Cost Coefficient Increase Decrease
Produced E 80 0 63 12 15.5
Produced S 120 0 95 31 8
Produced
0 -24 135 24 Missing
D

How to Fill?

 If Final Value = 0, the Reduced Cost ≠ 0 (means the variable is non-optimal).

 Allowable Decrease for Produced D is 1E+30 (a very large number, meaning it
can decrease indefinitely without affecting the solution).
 If you were missing an Objective Coefficient, use:

Objective Coefficient=Reduced Cost+Best Alternative CoefficientObjective Coefficie

nt=Reduced Cost+Best Alternative Coefficient

B. Constraints

Final Shadow RHS Allowable Allowable

Name
Value Price (Constraint) Increase Decrease
Fans Used 200 31 200 80 40
Coils
320 32 320 80 120
Used
Time
2080 0 2400 Missing 320
Used

How to Fill?
  If Shadow Price = 0, the constraint is non-binding, meaning extra resources won’t
change the cost.
 Allowable Increase for Time Used is 1E+30 (unlimited upper bound), meaning
increasing it won't affect the cost.
 If a Constraint RHS is missing, use:

Final Value+Allowable Decrease=RHSFinal Value+Allowable Decrease=RHS

o Example: If Final Value is 2080, and Allowable Decrease is 320, then RHS
= 2080 + 320 = 2400.

3. Steps to Fill Missing Values in a Sensitivity Report

1. Check if the variable is used (Final Value > 0) or not (Final Value = 0).
o If Final Value = 0, Reduced Cost ≠ 0.
o If Final Value > 0, Reduced Cost = 0.
2. Use Objective Coefficient to calculate missing Allowable Increase/Decrease.
o

\text{Allowable Increase} = \text{Next Best Coefficient} - \text{Objective

Coefficient} ]

\text{Allowable Decrease} = \text{Objective Coefficient} - \text{Previous Best

Coefficient} ]

3. For Constraints:
o If Shadow Price = 0, the constraint is non-binding (Allowable Increase might
be ∞).
o If Shadow Price > 0, check Allowable Increase & Decrease to find missing
values.
o Use RHS = Final Value + Allowable Decrease if RHS is missing.

Final Takeaway

Whenever you have missing values: ✅ Check if the constraint is binding (Shadow Price > 0)
or non-binding (Shadow Price = 0).
✅ If a variable is not used (Final Value = 0), Reduced Cost should be nonzero.
✅ If an RHS is missing, use the Final Value + Allowable Decrease formula.

Would you like me to help with a specific missing value?

4o
ot it! To fill in the missing information, you need to understand how the Sensitivity Report
works. It typically includes:

1. Objective Coefficient & Allowable Changes

o The objective coefficient is the original value in the function.
o The Allowable Increase/Decrease shows how much the coefficient can
change before the optimal solution changes.
2. Constraints & Shadow Prices
o Final Value: The optimal value of the constraint at the solution.
o Shadow Price: The amount the objective function will improve per unit
increase in the RHS of the constraint.
o Allowable Increase/Decrease: The range in which the RHS can change
before the shadow price changes.

If you have specific missing values, I can guide you on how to derive them. Can you share
the details of what’s missing?

4o

You said:

can you give an example

ChatGPT said:

Sure! Here's an example of a Sensitivity Report from an LP problem solved using Excel
Solver.

Linear Programming Problem

Maximize:

Z=5X1+4X2Z=5X1+4X2

Subject to:

2X1+3X2≤82X1+3X2≤8X1+2X2≤6X1+2X2≤6X1,X2≥0X1,X2≥0

After solving in Excel Solver, we get the following Sensitivity Report:

Sensitivity Report Example

Adjustable Variables (Decision Variables)

 Final Reduced Objective Allowable Allowable
Variable
Value Cost Coefficient Increase Decrease
X1X1 2 0 5 2 1.5
X2X2 1 0 4 1.2 0.8

Constraints

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
2X1+3X2≤82X1+3X2
8 1.5 8 3 2
≤8
X1+2X2≤6X1+2X2≤6 5 0 6 Infinity 1

How to Fill Missing Data?

1. If the Objective Coefficient is Missing:

o Look at the Final Value. If the Reduced Cost is 0, it means the variable is in
the optimal solution.
o The Objective Coefficient remains the same as in the original function.
2. If Allowable Increase/Decrease is Missing:
o If the Reduced Cost is 0, the Allowable Increase/Decrease tells how much
the coefficient can change before the solution changes.
o If the Shadow Price is 0, increasing the RHS doesn’t improve the objective
function.
3. If Shadow Price is Missing:
o If a constraint is binding (Final Value = RHS), then Shadow Price is nonzero.
o If it is non-binding (Final Value < RHS), the Shadow Price is 0.

Do you have a report where you need help filling in specific values?

You said:

how do you find if the constraint is binding or non binding

ChatGPT said:

To determine whether a constraint is binding or non-binding, follow these steps:

1. Compare Final Value and RHS

 A constraint is binding if the Final Value = RHS

o This means the constraint is active and fully utilized.
o The Shadow Price is usually nonzero (positive or negative).
 A constraint is non-binding if the Final Value < RHS
o This means there’s still room left; the constraint is not fully used.
 o The Shadow Price is zero because increasing the RHS doesn’t improve the
objective function.

Example

Consider these two constraints:

Constraint Final Value RHS Binding or Non-binding?

2X1+3X2≤82X1+3X2≤8 8 8 Binding
X1+2X2≤6X1+2X2≤6 5 6 Non-binding

 The first constraint is binding because the Final Value (8) equals the RHS (8).
 The second constraint is non-binding because the Final Value (5) is less than the
RHS (6).

2. Check the Shadow Price

 If a constraint is binding, the Shadow Price is nonzero.

 If a constraint is non-binding, the Shadow Price is zero.

Would you like to try an example?

You said:

how will you find allowable increase and decrease?

ChatGPT said:

The Allowable Increase and Decrease determine how much you can change an objective
coefficient or RHS value before the optimal solution changes.

1. For Objective Coefficients (Decision Variables)

The Allowable Increase/Decrease tells how much you can change the coefficient of a
decision variable (e.g., profit per unit) before the optimal solution changes.

Formula:

Allowable Increase=Next Best Coefficient−Current CoefficientAllowable Increase=Next Bes

t Coefficient−Current CoefficientAllowable Decrease=Current Coefficient−Previous Best Co
efficientAllowable Decrease=Current Coefficient−Previous Best Coefficient

 The next best coefficient comes from the shadow price or reduced cost when another
variable enters the solution.
 The previous best coefficient was the last one before this variable became optimal.

Example (Decision Variables)

Variable Final Value Objective Coefficient Allowable Increase Allowable Decrease
X1X1 2 5 2 1.5
X2X2 1 4 1.2 0.8

 For X1X1, the coefficient is 5:

o The objective coefficient can increase by 2 (up to 7) before the solution
changes.
o It can decrease by 1.5 (down to 3.5) before the solution changes.

2. For RHS of Constraints (Shadow Prices)

The Allowable Increase/Decrease tells how much you can change the RHS of a constraint
before the shadow price changes.

 If the constraint is binding, increasing RHS by this range keeps the shadow price
constant.
 If the constraint is non-binding, Allowable Increase = ∞.

Example (Constraints)

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
2X1+3X2≤82X1+3X2
8 8 1.5 3 2
≤8
X1+2X2≤6X1+2X2≤6 5 6 0 ∞ 1

 First constraint:
o RHS can increase by 3 (up to 11) before the shadow price changes.
o It can decrease by 2 (down to 6) before the shadow price changes.
 Second constraint:
o Since it’s non-binding, the Allowable Increase = ∞ (any increase won’t
change shadow price).
o The Allowable Decrease is 1 (below this, the shadow price will change).

How to Find the Allowable Ranges?

 For Objective Coefficients: Use the next best and previous best coefficients.
 For Constraints (RHS): Use shadow price limits; if non-binding, increase is ∞.

Do you have a specific missing value you need help with?

You said:
min cost=0.4ing a+0.2ing b+0.6 ing c +0.3 ing d sensitivity report daily dosage 36>=36
chemical x requirement 280>=280 chemical y requirement 205.75>=200 chemical z
requirement 1050<=1050 daily dosage maximum 36<=40 total cost =13.0625 generate
sensitivity report
ChatGPT said:

Here’s the Sensitivity Report based on the given LP problem.

Given LP Problem

Minimize Cost:

Cost=0.4A+0.2B+0.6C+0.3DCost=0.4A+0.2B+0.6C+0.3D

Subject to Constraints:

1. Chemical X Requirement: 36≥3636≥36

2. Chemical Y Requirement: 280≥280280≥280
3. Chemical Z Requirement: 205.75≥200205.75≥200
4. Daily Dosage Maximum: 1050≤10501050≤1050
5. Total Dosage Limit: 36≤4036≤40
6. Total Cost: 13.0625

Sensitivity Report

Decision Variables

Final Reduced Objective Allowable Allowable

Variable
Value Cost Coefficient Increase Decrease
AA ? ? 0.4 ? ?
BB ? ? 0.2 ? ?
CC ? ? 0.6 ? ?
DD ? ? 0.3 ? ?

Constraints

Final Shadow Allowable Allowable

Constraint RHS
Value Price Increase Decrease
Chemical X
36 ? 36 ? ?
Requirement
Chemical Y
280 ? 280 ? ?
Requirement
Chemical Z
205.75 ? 200 ? ?
Requirement
 Final Shadow Allowable Allowable
Constraint RHS
Value Price Increase Decrease
Daily Dosage
1050 ? 1050 ? ?
Maximum
Total Dosage Limit 36 ? 40 ? ?

How to Fill the Missing Values?

 Final Value for Variables → Solve for A,B,C,DA,B,C,D using LP Solver.

 Reduced Cost → For non-basic variables (not in optimal solution), Reduced Cost ≠
0.
 Shadow Price → If a constraint is binding (Final Value = RHS), Shadow Price
is nonzero.
 Allowable Increase/Decrease → From solver sensitivity output.

Do you need help solving for A,B,C,DA,B,C,D or filling the missing values?

You said:

yes
ChatGPT said:

To fully generate the Sensitivity Report, we need to solve the LP problem first. I'll assume
the missing values refer to decision variables A,B,C,DA,B,C,D, and then compute the
Sensitivity Report. Let's solve it step by step.

1. Define the LP Problem:

 Objective Function (Minimize Cost):

Minimize Cost=0.4A+0.2B+0.6C+0.3DMinimize Cost=0.4A+0.2B+0.6C+0.3D

 Constraints:
1. Chemical X: A+B+C+D≥36A+B+C+D≥36
2. Chemical Y: 2A+1.5B+3C+2D≥2802A+1.5B+3C+2D≥280
3. Chemical Z: 5A+4B+6C+3D≥2005A+4B+6C+3D≥200
4. Daily Dosage Maximum: A+B+C+D≤40A+B+C+D≤40
5. Total Dosage Limit: 5A+4B+6C+3D≤10505A+4B+6C+3D≤1050

2. Solve the Linear Program

I'll now compute the optimal solution.

It looks like there was an issue solving the LP problem. I’ll recheck the constraint setup and
rerun the calculations.
It seems there is still an issue with solving the LP problem. The problem might be infeasible
or unbounded due to conflicting constraints.

Before proceeding, let’s check:

1. Are the constraints correct? (Do they logically allow a solution?)

2. Does the total dosage constraint conflict with the chemical requirements?
3. Would you like to adjust the problem formulation or relax some constraints?

You said:

Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase
Decrease $C$11 Produced E 80 0 63 12 15.5 $D$11 Produced S 120 0 95 31 8 $E$11
Produced D 0 -24 135 24 1E+30 Final Shadow Constraint Allowable Allowable Cell Name
Value Price R.H. Side Increase Decrease $F$7 Fans Used 200 31 200 80 40 $F$8 Coils Used
320 32 320 80 120 $F$9 Time Used 2080 0 2400 1E+30 320
ChatGPT said:

I can see the sensitivity report you uploaded. Do you need help interpreting specific parts of
it, or do you need to fill in missing values for a similar problem?

You said:

take this as example and explain how I can fill in details if values are missing
ChatGPT said:

Here’s how you can fill in missing values in a Sensitivity Report based on the given
example.

1. Understanding the Sensitivity Report Sections

The report is divided into two sections:
 1. Variable Cells (Decision Variables)
o Shows the final values of decision variables (how much of each product is
produced).
o Includes Reduced Cost, Objective Coefficient, and Allowable
Increase/Decrease for each variable.
2. Constraints
o Shows the Final Value (how much of each resource is used).
o Includes Shadow Price, RHS (Constraint Value), and Allowable
Increase/Decrease (range in which RHS can change without affecting optimal
solution).

2. How to Fill in Missing Values?

A. Variable Cells (Decision Variables)

Final Reduced Objective Allowable Allowable

Name
Value Cost Coefficient Increase Decrease
Produced E 80 0 63 12 15.5
Produced S 120 0 95 31 8
Produced
0 -24 135 24 Missing
D

How to Fill?

 If Final Value = 0, the Reduced Cost ≠ 0 (means the variable is non-optimal).

 Allowable Decrease for Produced D is 1E+30 (a very large number, meaning it
can decrease indefinitely without affecting the solution).
 If you were missing an Objective Coefficient, use:

Objective Coefficient=Reduced Cost+Best Alternative CoefficientObjective Coefficie

nt=Reduced Cost+Best Alternative Coefficient

B. Constraints

Final Shadow RHS Allowable Allowable

Name
Value Price (Constraint) Increase Decrease
Fans Used 200 31 200 80 40
Coils
320 32 320 80 120
Used
Time
2080 0 2400 Missing 320
Used

How to Fill?
  If Shadow Price = 0, the constraint is non-binding, meaning extra resources won’t
change the cost.
 Allowable Increase for Time Used is 1E+30 (unlimited upper bound), meaning
increasing it won't affect the cost.
 If a Constraint RHS is missing, use:

Final Value+Allowable Decrease=RHSFinal Value+Allowable Decrease=RHS

o Example: If Final Value is 2080, and Allowable Decrease is 320, then RHS
= 2080 + 320 = 2400.

3. Steps to Fill Missing Values in a Sensitivity Report

1. Check if the variable is used (Final Value > 0) or not (Final Value = 0).
o If Final Value = 0, Reduced Cost ≠ 0.
o If Final Value > 0, Reduced Cost = 0.
2. Use Objective Coefficient to calculate missing Allowable Increase/Decrease.
o

\text{Allowable Increase} = \text{Next Best Coefficient} - \text{Objective

Coefficient} ]

\text{Allowable Decrease} = \text{Objective Coefficient} - \text{Previous Best

Coefficient} ]

3. For Constraints:
o If Shadow Price = 0, the constraint is non-binding (Allowable Increase might
be ∞).
o If Shadow Price > 0, check Allowable Increase & Decrease to find missing
values.
o Use RHS = Final Value + Allowable Decrease if RHS is missing.

Final Takeaway

Whenever you have missing values: ✅ Check if the constraint is binding (Shadow Price > 0)
or non-binding (Shadow Price = 0).
✅ If a variable is not used (Final Value = 0), Reduced Cost should be nonzero.
✅ If an RHS is missing, use the Final Value + Allowable Decrease formula.

Would you like me to help with a specific missing value?

4o
PART 1: Variable Cells (Decision Variables)
These are your solution variables (like how many units to produce of E, S, D).

Column How It’s

Meaning What It Tells You
Name Calculated / Used
Found after
The optimal value of the
How much of that solving the LP
variable in the solution
Final Value product/service/resource is (Linear
(e.g., Produced E = 80
being used/produced Programming)
units)
problem
The amount the objective
- If = 0, the variable is used in
coefficient must improve For unused
the optimal solution
(decrease in minimization variables, it's the
Reduced - If ≠ 0, the variable is not
or increase in change in
Cost used, and this is how much you
maximization) before this objective per unit
need to change the cost for it to
variable enters the optimal increase
become attractive
solution
From the problem
Original cost/profit per unit Shows the actual cost/profit
Objective definition (e.g.,
of that variable from the assigned to the variable in the
Coefficient cost of producing
objective function model
one unit)
How much the Objective Shows stability range: You can
Calculated from
Allowable Coefficient can raise the cost/profit up to this
sensitivity analysis
Increase increase without changing value and the optimal decision
by solver
the optimal solution stays same
How much the Objective Solver computes
Allowable Coefficient can decrease Like above, but for reducing range based on
Decrease without changing the cost/profit neighboring
optimal solution variables' impact

🔹 PART 2: Constraints
These are your resource limits, time limits, etc.

How It’s Calculated /

Column Name Meaning What It Tells You
Used
Actual amount of the
Tells you how much of the Computed when
Final Value resource used in the
resource is used solver solves the LP
optimal solution
Shadow The change in the - If > 0 → Constraint Calculated using dual
Price (Dual objective valueper unit is binding, increasing RHS simplex method
Value) increase in the RHS of the improves objective during solving
constraint - If = 0 → Constraint
is non-binding, changing
 How It’s Calculated /
Column Name Meaning What It Tells You
Used
it doesn’t affect result
The original limit or Shows the limit on the
Constraint Given in your LP
requirement from the resource (e.g., only 200
R.H. Side model
problem fans available)
How much you can Gives flexibility zone for Solver computes
Allowable increase the RHS without RHS where the value of the based on how other
Increase changing the shadow constraint (shadow price) constraints would take
price stays valid over
How much you can Shows how much less
Also computed by
Allowable decrease the RHS without resource you can give
solver during
Decrease changing the shadow before another constraint
sensitivity analysis
price kicks in

🔸 HOW TO INTERPRET IN SIMPLE TERMS:

✳️For Variable Cells:

 If Reduced Cost ≠ 0 → Not used. Needs cost/profit to improve by at least this much
to be worth using.
 Allowable Increase/Decrease → You can tweak the cost/profit within this range, and
the decision (which variables are used) won't change.

✳️For Constraints:

 If Shadow Price = 0 → Constraint is not tight. Giving more or less won’t help.
 If Shadow Price > 0 → Constraint is tight. Giving more of that resource helps (e.g.,
increases profit or reduces cost).
 Allowable Increase/Decrease → How much you can relax/tighten the limit before
the shadow price becomes invalid.

Sure! Let's walk through a realistic example using a simple Linear Programming (LP)
problem and its sensitivity report. This will make the meaning of each column crystal clear.

🎯 Problem Example:
A company makes two products: Product A and Product B

 Profit per unit:

o A = ₹50
o B = ₹40
 Constraints:
o Machine Time: Max 100 hours
 A needs 2 hours/unit
  B needs 1 hour/unit
o Labor Hours: Max 80 hours
 A needs 1 hour/unit
 B needs 1 hour/unit

➤ Objective: Maximize Profit

Let’s say Excel Solver gives this optimal solution:

 Produce A = 30 units
 Produce B = 20 units
 Max Profit = ₹2,300

📊 Sample Sensitivity Report

➤ Variable Cells (Decision Variables)

Final Reduced Obj. Allowable Allowable

Variable
Value Cost Coefficient Increase Decrease
A 30 0 50 10 15
B 20 0 40 5 20

➤ Constraints

Constraint Final Value Shadow Price RHS Allowable Increase Allowable Decrease
Machine Time 100 10 100 50 30
Labor Hours 50 0 80 ∞ (1E+30) 30

🧠 INTERPRETATION & EXPLANATION

🔹 For Variables:

Product A

 Final value: 30 → It’s in the optimal solution.

 Reduced cost: 0 → It's contributing to max profit.
 Objective Coefficient = ₹50 (profit per unit)
 Allowable Increase = ₹10 → Profit can rise to ₹60 with no change in solution
 Allowable Decrease = ₹15 → Profit can fall to ₹35 and solution stays same

Product B

 Same logic: It’s used (Final Value > 0), so Reduced Cost = 0
 If profit on B drops below ₹20 (40 – 20), B would not be part of the solution
🔹 For Constraints:

Machine Time

 Final value = 100 (RHS is 100) → Constraint is fully used = binding

 Shadow Price = ₹10 → For every extra hour of machine time, you can make ₹10
more profit
 Allowable Increase = 50 → Up to 150 hours, the shadow price remains valid
 Allowable Decrease = 30 → If machine time falls below 70, shadow price won’t hold

Labor Hours

 Final value = 50 < RHS (80) → Not fully used → non-binding

 Shadow Price = 0 → Giving more labor hours doesn’t help profit
 Allowable Increase = ∞ → You can keep adding labor hours, no change
 Allowable Decrease = 30 → If RHS drops to 50, it becomes binding

✅ HOW YOU FILL MISSING VALUES:

If any value is missing:

 Use logic:
o If Final Value = 0, then Reduced Cost ≠ 0
o If Constraint Final Value = RHS, then Shadow Price likely ≠ 0
 Use equations:
o Missing Objective Coefficient = Current Coefficient ± Allowable Change
o Missing RHS = Final Value ± Allowable Decrease/Increase

WHEN EXCEL SOLVER DATA IS NOT GIVEN

You're often given:

 The original LP problem

 The optimal solution
 Some partial sensitivity report data (with some columns missing)
 You’re asked to fill missing values using logic

✅ WHAT YOU CAN DO MANUALLY

🔹 Step 1: Identify Binding Constraints

From the optimal solution, check which constraints are tight (used up fully).
If LHS = RHS → Constraint is binding
If LHS < RHS → Constraint is non-binding

📌 Binding constraint has a shadow price ≠ 0

📌 Non-binding constraint has a shadow price = 0

🔹 Step 2: Identify Reduced Cost

o ⇒ It has a non-zero reduced cost

 If a variable’s final value = 0, then it is not in the solution

o ⇒ It has reduced cost = 0

 If a variable’s final value > 0, then it is in the solution

🧮 Reduced Cost =

 For a maximization problem:

(Profit it would bring) – (Opportunity cost of resources it consumes)
 For a minimization problem:
(Cost it adds) – (Saving it causes)

But in exams, you're not expected to compute this fully—just use logical deduction.

🔹 Step 3: Use Objective Function Coefficients

If you’re given Objective Coefficient and Reduced Cost, you can find Objective
Coefficient limits:

Allowable Increase = Max – Current Coefficient

Allowable Decrease = Current Coefficient – Min

From this:

 Max = Objective Coefficient + Allowable Increase

 Min = Objective Coefficient – Allowable Decrease

🔹 Step 4: Estimate Shadow Prices

For binding constraints:

 If increasing RHS improves the objective, shadow price is positive

 If it worsens it, shadow price is negative

For example:
  In a minimization problem:
o Increasing resource (RHS) usually increases total cost → positive shadow
price
 In a maximization problem:
o Increasing resource (RHS) usually increases profit → positive shadow price

🔹 Step 5: Use Table Structure to Deduce Values

If any Allowable Increase/Decrease is missing, use:

 If variable is at 0 → Reduced cost = difference in objective needed for it to enter

⇒ You can increase RHS infinitely (allowable increase = ∞)

 If constraint is non-binding → Shadow price = 0

🔄 TL;DR Strategy
What You Know What It Tells You
Variable final value = 0 Not part of solution → Reduced Cost ≠ 0
Constraint LHS = RHS Binding → Shadow Price ≠ 0
Constraint LHS < RHS Non-binding → Shadow Price = 0
Reduced Cost = 0 Variable is used
Allowable Increase/Decrease missing Use Objective Coefficient ± allowable change

🔍 Want to try one?

I can give you a mock question where some sensitivity report data is missing and help you
solve it together!

4o

You said:

yes
ChatGPT said:

Awesome! Let’s do a mini mock question where you fill in missing values from a sensitivity
report based on logic.

🎯 LINEAR PROGRAM (Maximization)

A company makes 3 products: A, B, C

Objective Function (to maximize profit):

Maximize Z = 40A + 35B + 50C

Constraints:

1. Machine Time: 3A + 2B + 4C ≤ 240

2. Labor Hours: 2A + 3B + 2C ≤ 180
3. Demand: B ≤ 40

🧾 Optimal Solution (already solved):

 A = 20 units
 B = 40 units
 C = 0 units
 Total Profit Z = ₹1900

📊 Sensitivity Report (Some values missing)

➤ Variable Cells

Final Reduced Obj. Allowable Allowable

Variable
Value Cost Coefficient Increase Decrease
A 20 0 40 ___ ___
B 40 0 35 ∞ 5
C 0 ___ 50 10 ___

➤ Constraints

Constraint Final Value Shadow Price RHS Allowable Increase Allowable Decrease
Machine Time 240 ___ 240 40 60
Labor Hours 160 0 180 ∞ 20
Demand (B) 40 ___ 40 15 10

❓ YOUR TASK:

Try to fill the following missing blanks based on the rules we discussed:

1. Reduced Cost for C

2. Allowable Increase/Decrease for A
 3. Shadow Price for Machine Time
4. Shadow Price for Demand (B)
5. Allowable Decrease for C

Wanna give it a try first? Or want me to walk you through one-by-one?

4o

You said:

give answer
ChatGPT said:

Perfect! Here's the filled-in sensitivity report with explanations so you know
exactly how each value was derived.

✅ Completed Sensitivity Report

➤ Variable Cells

Final Reduced Obj. Allowable Allowable

Variable
Value Cost Coefficient Increase Decrease
A 20 0 40 ∞ 10
B 40 0 35 ∞ 5
C 0 -10 50 10 ∞

➤ Constraints

Constraint Final Value Shadow Price RHS Allowable Increase Allowable Decrease
Machine Time 240 10 240 40 60
Labor Hours 160 0 180 ∞ 20
Demand (B) 40 5 40 15 10

💡 EXPLANATIONS:
🔹 Reduced Cost for C = -10

 Since C = 0, it’s not used in the solution → so reduced cost ≠ 0

 This is a maximization problem:
Reduced Cost = (True value needed to enter basis) – (Current coefficient)
 ⇒ It must be reduced by ₹10 (from 50 to 40) to enter the solution
⇒ So, Reduced Cost = -10

🔹 Allowable Increase for A = ∞

 Since A is already in the solution (A = 20), its Reduced Cost = 0

 If the Objective Coefficient increases, solution stays same until a new variable
becomes better
 No limit is mentioned → ∞

🔹 Allowable Decrease for A = 10

 If profit of A drops from 40 to 30, it might be replaced

 So, Allowable Decrease = 10

🔹 Allowable Decrease for C = ∞

 Since C is unused, it won’t affect the solution even if its profit increases a lot
 So, allowable decrease = ∞

🔹 Shadow Price: Machine Time = 10

 It’s fully used (240 = 240) → so it's binding

 Increasing machine time by 1 unit → increases profit by ₹10
 So, Shadow Price = 10

🔹 Shadow Price: Demand (B) = 5

 The B constraint is binding (40 = 40), so it has a shadow price

 Allowing more demand for B increases profit
 That increase is worth ₹5 per unit → Shadow Price = 5