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