LP Software & Sensitivity Analysis

These flashcards cover key vocabulary terms related to linear programming and sensitivity analysis based on the provided lecture notes.

Standard Form

A form for linear programming problems where variables appear on the left-hand side of constraints and numeric values on the right-hand side.

Excel Solver

A tool in Excel used for optimization that finds the best possible solution to a given problem, subject to constraints.

Profit Function

An equation used to calculate total profit, represented as Z = profit per unit of product multiplied by the number of units produced.

Sensitivity Analysis

A technique used to determine how changes in parameter values affect the optimal solution of a linear programming problem.

Decision Variables

Variables that represent the decisions to be made in a linear programming model, often denoted as x₁, x₂, etc.

Objective Function Coefficient

The coefficients of variables in the objective function that measure the contribution of each variable to the overall objective (e.g., profit).

Shadow Price

The marginal value of one additional unit of a resource, indicating how much the objective function would improve if the resource were increased by one unit.

RHS (Right Hand Side) of Constraints

The values on the right side of inequality constraints that set limits for the resource usage in a linear programming model.

LHS (Left Hand Side) of Constraints

The expressions on the left side of inequality constraints in a linear programming model, often involving decision variables.

Usage Constraint

A constraint that specifies the maximum amount of a resource that can be used in the production process.