Reading Assignment:

• Solver Tool in Excel: Due Monday, March 4.
• Course notes:Matrix Games: Due Monday, March 11.

Homework Assignment:

• Modeling: Modeling problems 1-22 on the class webpage. Due Friday, March 15.
• Sensitivity Analysis: The Silicon Chip Corp problems. Due Wednesday, Nov 26.
• Sensitivity Analysis: The Concrete Products Corp problems. Due Friday, Nov. 30.
• Sensitivity Analysis: Widgets International, LTD. Due Monday, Nov. 21.
• Practice modeling and solving LPs using the Solver Tool in Excel. Monday, Dec. 3.

Vocabulary List:

• Section 6: Sensitivity Analysis
  • 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 5:
  • vertices
  • geometry of duality
  • geometry of degeneracy
• Section 6:
  • tableau approach to sensitivity analysis
  • Range analysis (cost coefficients and right hand sides)
  • Pricing out

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: