Overview of Week 9

Reading Assignment:
- Course notes: Section 6: Due Monday, March 4.
- Solver Tool in Excel: Due Friday, March 8.
- Course notes:Matrix Games: Due Monday, March 11.

Modeling: Modeling problems 1-20 on the class webpage. Due Friday, March 8.
Sensitivity Analysis: The Silicon Chip Corp problems due Wednesday, March 6.
Sensitivity Analysis: The Concrete Products Corp problems, due Friday, March 8.
Sensitivity Analysis: Widgets International, LTD., due Monday, March 11.
Solving LPs with Excel: Solver Prepare your laptop and bring to class on Monday March 11.

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

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

Friday, March 8.

The first question on the quiz will concern the vocabulary words from Sections 5 and 6 and/or will ask you to model one of the models 1-18. The second question will ask you to compute a break-even price, to perform a range analysis on either an objective coefficient and/or a right-hand side or both, or price-out a new activity.