Overview of Week 10

Overview of Week 10

Reading Assignment:
- Solver Tool in Excel: Due Monday, December 7.
Homework Assignment:
- Modeling: Modeling problems 1-18 on the class webpage. Due Friday, December 4.
- Sensitivity Analysis: The Silicon Chip Corp problems, Due Monday, Nov 23.
- Sensitivity Analysis: The Concrete Products Corp problems, Due Monday, Nov. 30
- Sensitivity Analysis: Widgets International, LTD., due Monday, Dec. 7.
- Practice modeling and solving LPs using the Solver Tool in Excel. Monday, Dec. 7.
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
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.