BUSOBA 2321 Final EXAM 2025
QUESTIONS AND ANSWERS
What question are we trying to answer when performing sensitivity analysis? - ANS How
sensitive is our solution to changes in the assumptions that we made?
T or F: The optimal solution will not always be at a corner point - ANS False - it always will be
since this is where two constraints are maxed out - more resources = more production = more
optimal
T or F: The assumptions made in our linear program formulation (i.e. how much profit we will
be able to make per unit of a particular product) may change based on market conditions -
which we do not have control over. - ANS True
Define shadow price - ANS The change in the OBJ FN value if we increase one constraint by
one unit.
By solving for the shadow price of a constrained resource, what question are we answering? -
ANS If we have a additional unit of the constrained resource available, how much could our
OBJ FN value increase by?
How do we know if the addition of a constraing will result in the OBJ FN value increases, staying
the same, or decreasing? - ANS An additional constraint will never increase the OBJ FN VAL.
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, If the constraint is redundant (i.e. it is already being adhered too; there is another constraint
that is more restrictive than this new constraint), our OBJ FN val wiull remain the same - the
feasible region will not change.
If it is not redundant (is not already being adhered to - the addition of this constraint decreases
our feasible region), our OBJ FN val will decrease
What are the two sections of a sensitivity report? - ANS 1. adjustable cells
2. constraints
For what type of constraint (what sign) might slack exist? - ANS maximums;
<
For what type of constraint (what sign) might surplus exist? - ANS Minimums
>
Why might the allowable increase of a constraint be infinite? - ANS If slack already exists - if
we already aren't using up all of what we currently have available, we will never gain anything
by increasing the availability of the resource.
Why might the allowable decrease of a constraint be infinite? - ANS if a surplus already exists
- no matter how much the RHS of the constraint decreased, no additional value would be added
because we are already above the current minimum - making the minimum lower would not
help us.
If surplus exists, what is the allowable increase for the constraint? - ANS the amount of the
surplus
if the minimum increases to our current amount of production, the constraint will then be
binding and thus the shadow price will become a non-zero value
2
Page
If surplus exists, what is the allowable decrease for the constraint? - ANS infinity
@COPYRIGHT BRAINBARTER 2025/2026
QUESTIONS AND ANSWERS
What question are we trying to answer when performing sensitivity analysis? - ANS How
sensitive is our solution to changes in the assumptions that we made?
T or F: The optimal solution will not always be at a corner point - ANS False - it always will be
since this is where two constraints are maxed out - more resources = more production = more
optimal
T or F: The assumptions made in our linear program formulation (i.e. how much profit we will
be able to make per unit of a particular product) may change based on market conditions -
which we do not have control over. - ANS True
Define shadow price - ANS The change in the OBJ FN value if we increase one constraint by
one unit.
By solving for the shadow price of a constrained resource, what question are we answering? -
ANS If we have a additional unit of the constrained resource available, how much could our
OBJ FN value increase by?
How do we know if the addition of a constraing will result in the OBJ FN value increases, staying
the same, or decreasing? - ANS An additional constraint will never increase the OBJ FN VAL.
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, If the constraint is redundant (i.e. it is already being adhered too; there is another constraint
that is more restrictive than this new constraint), our OBJ FN val wiull remain the same - the
feasible region will not change.
If it is not redundant (is not already being adhered to - the addition of this constraint decreases
our feasible region), our OBJ FN val will decrease
What are the two sections of a sensitivity report? - ANS 1. adjustable cells
2. constraints
For what type of constraint (what sign) might slack exist? - ANS maximums;
<
For what type of constraint (what sign) might surplus exist? - ANS Minimums
>
Why might the allowable increase of a constraint be infinite? - ANS If slack already exists - if
we already aren't using up all of what we currently have available, we will never gain anything
by increasing the availability of the resource.
Why might the allowable decrease of a constraint be infinite? - ANS if a surplus already exists
- no matter how much the RHS of the constraint decreased, no additional value would be added
because we are already above the current minimum - making the minimum lower would not
help us.
If surplus exists, what is the allowable increase for the constraint? - ANS the amount of the
surplus
if the minimum increases to our current amount of production, the constraint will then be
binding and thus the shadow price will become a non-zero value
2
Page
If surplus exists, what is the allowable decrease for the constraint? - ANS infinity
@COPYRIGHT BRAINBARTER 2025/2026
