BUSOBA 2321 Final questions well
answered to pass
What question are we trying to answer when performing sensitivity analysis? -
correct answer ✔✔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 - correct answer
✔✔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. - correct answer
✔✔True
Define shadow price - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔An additional
constraint will never increase the OBJ FN VAL.
,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? - correct answer ✔✔1.
adjustable cells
2. constraints
For what type of constraint (what sign) might slack exist? - correct answer
✔✔maximums;
<
For what type of constraint (what sign) might surplus exist? - correct answer
✔✔Minimums
>
Why might the allowable increase of a constraint be infinite? - correct answer
✔✔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? - correct answer
✔✔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? - correct answer
✔✔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
If surplus exists, what is the allowable decrease for the constraint? - correct
answer ✔✔infinity
If slack exists, what is the allowable increase for the constraint? - correct answer
✔✔infinity
If slack exists, what is the allowable decrease for the constraint? - correct answer
✔✔the amount of the slack
decreasing by this amount will mean that we would be using all of the resource - it
would then be binding and the shadow price woudl change
When a constraint is binding, the shadow price is - correct answer ✔✔a non-zero
value
answered to pass
What question are we trying to answer when performing sensitivity analysis? -
correct answer ✔✔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 - correct answer
✔✔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. - correct answer
✔✔True
Define shadow price - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔An additional
constraint will never increase the OBJ FN VAL.
,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? - correct answer ✔✔1.
adjustable cells
2. constraints
For what type of constraint (what sign) might slack exist? - correct answer
✔✔maximums;
<
For what type of constraint (what sign) might surplus exist? - correct answer
✔✔Minimums
>
Why might the allowable increase of a constraint be infinite? - correct answer
✔✔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? - correct answer
✔✔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? - correct answer
✔✔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
If surplus exists, what is the allowable decrease for the constraint? - correct
answer ✔✔infinity
If slack exists, what is the allowable increase for the constraint? - correct answer
✔✔infinity
If slack exists, what is the allowable decrease for the constraint? - correct answer
✔✔the amount of the slack
decreasing by this amount will mean that we would be using all of the resource - it
would then be binding and the shadow price woudl change
When a constraint is binding, the shadow price is - correct answer ✔✔a non-zero
value
