Reading Assignment:

• Course notes: Section 6: Due Monday, November 30.
• 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.

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 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)
  • 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: