Overview of Week 10
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Reading Assignment:
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Homework Assignment:
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Vocabulary List:
- Section 6: Sensitivity Analysis
- What is the fundamental block matrix product that shows how
every simplex tableau can be obtained by multiplying the initial tableau
on the left by a nonsingular matrix?
- tableau approach to sensitivity analysis (block matrix structure)
- break-even price
- reduced cost
- marginal values
- shadow prices
- objective coefficient range
- right hand side (or resource) range
- pricing out
- the fundamental theorem on sensitivity analysis
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Key Concepts:
- Section 6:
- What is the fundamental block matrix product that shows how
every simplex tableau can be obtained by multiplying the initial tableau
on the left by a nonsingular matrix?
- tableau approach to sensitivity analysis (block matrix structure)
- break-even price
- reduced cost
- marginal values
- shadow prices
- objective coefficient range
- right hand side (or resource) range
- pricing out
- the fundamental theorem on sensitivity analysis
Skills to Master:
- Apply the dual simplex algorithm
- computing break-even prices
- computing ranges (cost coefficients and right-hand sides)
- pricing out a new activity
- solving sensitivity analysis word problems
Quiz:
Friday, December 4.
- On this quiz the first question
will concern the theory and vocabulary words from Section 6.
The second question will ask you to do one or more of the following 3 things:
(1) compute the sensitivity ranges for either an objective coefficient or a right-hand side,
(2) price-out a new activity, and/or
(3) answer a sensitivity analysis question using the tools we have developed in
class for this purpose.