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    Sensitivity Analysis

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    aditya_kapre
    This document discusses sensitivity analysis for an optimization problem involving maximizing profit from publishing restaurant guides (x1) and real estate guides (x2). It finds that maximum profit of $11,500 occurs when x1 = 8,000 and x2 = 10,000. The sensitivity range for x2 is found to be up to 0.7353, and slack in the printing budget constraint is $140. Increasing the rack space constraint leads to higher optimal profits, while reducing x1 leads to a $250 decrease in optimal profit.

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    Sensitivity Analysis

    Uploaded by

    aditya_kapre
    32 views14 pages
    This document discusses sensitivity analysis for an optimization problem involving maximizing profit from publishing restaurant guides (x1) and real estate guides (x2). It finds that maximum profit of $11,500 occurs when x1 = 8,000 and x2 = 10,000. The sensitivity range for x2 is found to be up to 0.7353, and slack in the printing budget constraint is $140. Increasing the rack space constraint leads to higher optimal profits, while reducing x1 leads to a $250 decrease in optimal profit.

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    This document discusses sensitivity analysis for an optimization problem involving maximizing profit from publishing restaurant guides (x1) and real estate guides (x2). It finds that maximum profit of $11,500 occurs when x1 = 8,000 and x2 = 10,000. The sensitivity range for x2 is found to be up to 0.7353, and slack in the printing budget constraint is $140. Increasing the rack space constraint leads to higher optimal profits, while reducing x1 leads to a $250 decrease in optimal profit.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views14 pages

    Sensitivity Analysis

    Uploaded by

    aditya_kapre
    This document discusses sensitivity analysis for an optimization problem involving maximizing profit from publishing restaurant guides (x1) and real estate guides (x2). It finds that maximum profit of $11,500 occurs when x1 = 8,000 and x2 = 10,000. The sensitivity range for x2 is found to be up to 0.7353, and slack in the printing budget constraint is $140. Increasing the rack space constraint leads to higher optimal profits, while reducing x1 leads to a $250 decrease in optimal profit.

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    Sensitivity Analysis.

    ISLAND PUBLISHING COMPANY.

    SUM NO. 35, 36 & 37


    PAGE NO: 120-121

    Aditya Rajesh Kapre


    PGP10
    Roll No. 20101001
    Q.35

    Variables:
    x1 – no. of restaurant and entertainment guides
    x2 - no. of real estate guides

    x1 x2
    Profit 0.5 0.75 <----- Maximize
    Constraints
    1 0.17 0.25 <= 4000
    2 1 1 <= 18000
    3 1 0 >= 8000
    4 0 1 >= 8000
    Q.35

    Solving the given objective function, we get-


    Q.35

    The maximum profit is obtained for-

    x1 = 8000 units

    x2 = 10000 units
    Z= $ 11500
    For given constraints.
    Q. 36 (a)

    We have to find the sensitivity range for the advertising


    revenue generated by the real estate guide(x2).
     The terms to be considered here are-
    1. 0.5 x1 + 0.75 x2 (slope of this term)
    2. 0.17 x1 + 0.25 x2 <= 4000

     Now for the sensitivity analysis, we’ve to make the slope of the
    objective function equal to the slope of one of the constraints.
     Thus, the objective function line becomes exactly parallel to
    the constraint line.
    Q.36 (a)

    Now here we have to find the sensitivity analysis


    only for one range i.e. for real estate guide.
    The slope of the objective function is -0.5/0.75.
    Now considering c2 as the objective function
    coefficient for real estate guide (x2).
    -0.5 = -0.17
    c2 0.25

    i.e. c2 = 0.7353
    Q.36 (a)

    This means that the coefficient of x2 is 0.7353, then


    the objective function will have a slope of
    -0.5/0.7353 or -0.17/0.25.
    Thus, we have determined the upper limit of the
    sensitivity range for c2, the x2 coefficient, is 0.7353.
     Hence,
    c2 <= 0.7353
    i.e. the value of coefficient of x2 can be varied upto 0.7353
    while getting the same optimal solution.
    Q. 36 (b)

    Now using these values, we can find the slack in the


    printing budget.
    The constraint representing the same is-
    0.17 x1 + 0.25 x2 <=4000
    i.e. 0.17 x1 + 0.25 x2 + s1 =4000

     Using the values of x1 and x2 , we get the slack ‘s1’ in the


    printing budget of $140.
    Q.36 (c)

    Now, changing the constraint


    x2 >= 12000
    Keeping all other constraints as they are, we get the graph :-
    Q. 36 (c)

    We can see that for the change in constraint, we have


    no feasible solution.
    Hence, the company should not accept this offer.
    Q.37 (a)

    If the rack space is increased to 18500, we get a


    change in constraint as:
    x1 + x2 <= 18500
     For this, we get the solution-
    Q.37 (a)

    The solution obtained here is-


    x1 = 8000 & x2 = 10500
    and Z = $ 11875

     Similarly, if the rack space is increased for 20000, the


    solution obtained is-
    x1 = 8000 & x2 = 12000
    and Z = $ 11920
    Q.37 (b)

    If the company reduces its distribution of


    entertainment guide from 8000 to 7000, the net
    profit would be-
    Z = $ 11750
    This value is still more than for the initial constraint.
    The net increase in the worth would be-
    ΔZ = 11750 – 11500
    i.e. ΔZ = $ 250.
    Thank You

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