SAINTLEO COM315 2020 January Module 4 Discussion Latest

COM315 Decision Support Systems

Module 4 Discussion

Explain how a change in resource availability can affect the optimal solution of a problem.

Explain how a change in an objective function coefficient can affect the optimal solution of a problem.

What is the 100% rule? What is its role in analyzing the impact of simultaneous changes in model input data values?

What is the pricing out procedure? How can a firm benefit from using the pricing out procedure?

What is a sensitivity report? How is it used?

How do we detect the presence of alternative optimal solutions from a Solver Sensitivity Report?

What is the shadow price? Give an example. Why would a firm find information regarding the shadow price of a resource useful?

Explain slack and surplus. Give an example of each.

Explain binding and non-binding constraints. How can you tell in the sensitivity report that a constraint is binding.