Overview of Week 9

Reading Assignment:

Homework Assignment:

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)
 breakeven 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:
 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)
 breakeven 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 breakeven prices
 computing ranges (cost coefficients and righthand sides)
 pricing out a new activity
 solving sensitivity analysis word problems

Quiz:
Thanksgiving Break