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Chapter 3

Linear Programming: Sensitivity

Analysis and Interpretation

of Solution

3.1 Introduction to Sensitivity Analysis 3.4 More than Two Decision Variables
The Modified GulfGolf Problem
3.2 Graphical Sensitivity Analysis
The Kenya Cattle Company Problem
Objective Function Coefficients
Formulation of the KCC Problem
Right-Hand Sides
Computer Solution and Interpretation for the KCC
3.3 Sensitivity Analysis: Computer Solution Problem
Interpretation of Computer Output
3.5 The Taiwan Electronic Communications (TEC)
Simultaneous Changes
Problem
Interpretation of Computer Output – A Second
Problem Formulation
Example
Computer Solution and Interpretation
Cautionary Note on the Interpretation of Dual
Prices

Learning objectives By the end of this chapter you will be able to:

l Explain the importance of sensitivity analysis in linear programming

l Undertake graphical sensitivity analysis
l Undertake sensitivity analysis using computer output

l Explain the management implications of sensitivity analysis

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