LLP Solving Examples

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Microsoft Excel 15.

0 Sensitivity Report
Worksheet: [Book1]Sheet1
Report Created: 2/9/2021 10:45:28 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$E$4 18 0 40 6.6666666667 16.666666667
$F$4 8 0 35 25 5

Constraints Shadow Price - one unit of incr


Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$H$5 60 3.3333333333 60 36 12 The range which holds the va
$H$7 96 8.3333333333 96 24 36

1st table is for Objective function only. for Raw material


2nd table is for Contraints only.
for Labour hours

In case of Constraint table, the


x1 18
x2 8
Allowable increase/decrease - for objective function
Min. value max. value
23.3333333 46.66667
Range Beyond this range the solutions will get changed i.e.
30 60 the values 18 and 8 values doesn’t hold good
The extreme values of the range are exclusive.

Shadow Price - one unit of increase/decrease in the right hand side of constraint will increase/decrease the profit by
3.33.(i.e. 1000+3.33)

The range which holds the values between Allowable decrease to Allowable increase = Only in the range will the
Shadow price will be applicable

for Raw material Min. Max


Within the range of the contraints the Shadow price validity remains,
48 96 beyond this range the shadow prices changes.
for Labour hours 60 120

In case of Constraint table, the shadow price for entire range is valid unlike in Objective function table where the the
extreme values are not inclusive.
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [LLP solving examples.xlsx]Sheet1
Report Created: 2/11/2021 8:58:48 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$E$7 order size Bicycle 94 0 100 50 12.5
$F$7 order size Moped 54 0 300 66.666666667 100
$G$7 order size Child seats 0 -20 50 20 1E+030 Here as the product is a
Allowable
Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$I$8 Capital 93000 0.1666666667 93000 28200 32400
$I$9 Storage 101 100 101 54 23.5
Reduced Cost - Implies that the particular prodict is
underpriced bt the value given in the sensitivity report.

Note - In case of Minimization problems, there will be mention


of overpriced costs.

Here as the product is already underpriced, the lower value or the


Allowable decrease will be upto infinity
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [LLP solving examples.xlsx]Sheet6
Report Created: 2/11/2021 9:05:13 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$E$7 Min 3.3333333333 0 60 36 12
$F$7 8.3333333333 0 96 24 36

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$H$10 35 8 35 25 5 In case of Minimization,
$H$8 40 18 40 6.6666666667 16.666666667 w.r.t
In case of Minimization, the Shadow price implies change in cost of the product
w.r.to changes in the Constraint values.
Min

60 96
3.333333 8.333333
2 4 40 40

3 3 35 35

optimal 1000
180
Bicycle Moped Child seats
100 300 50

order size 94 54 0
Capital 300 1200 120 93000 93000
Storage 0.5 1 0.5 101 101

optimal 25600
40 35
18 8
2 3 60 60

4 3 96 96

optimal 1000
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [Book1]Example 2
Report Created: 2/9/2021 10:55:55 AM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$D$4 0 -2.25 4 2.25 1E+030
$E$4 0 -2.5 10 2.5 1E+030
$F$4 3.125 0 25 1E+030 5

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$H$5 25 3.125 25 5 25
$H$7 25 0 30 1E+030 5
$H$9 6.25 0 40 1E+030 33.75
4 10 25
0 0 3.125
2 4 8 25 25

4 9 8 25 30

6 8 2 6.25 40

optimal 78.125

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