BUSOBA 2321: Mod. 10: Sensitivity Analysis with Solver/W9

Adjustable Cell Table Column

• Cell

• Name

• Final Value

• Reduced Cost

• Objective Coefficient

• Allowable Increase

• Allowable Decrease

Cell

The location of that adjustable cell (decision variable) in the source excel sheet

Name

The header above the referenced adjustable cell (name of the decision variable)

Final Value

Value of the referenced cell (optimal solution)

Reduced Cost

•*Ignore this for this course*

•Objective Coefficient:

The objective function coefficient for that decision variable

•Allowable Increase: 

How much this variable’s coefficient can increase before the optimal solution changes

•Allowable Decrease: 

How much this variable’s coefficient can decrease before the optimal solution changes

1E+30 is

a number notated in scientific notation and   represents a 1 followed by 30 zeros.  In solver   sensitivity analysis this can be interpreted as infinity

Constraint Table Columns

• Cell

• Name

• Final Value

• Shadow Price

• Constraint RH Side

• Allowable Increase

• Allowable Decrease

•Cell:

The location of that constraint’s final value in the source excel sheet

•Name:

The header for the constraint’s row (name of the constraint)

•Final Value:

Value of the referenced cell (LHS of constraint)

•Shadow Price:

The increase in the objective function value   for every 1 increase in the constraint RHS

•Constraint R. H. Side:

The right hand side value of the constraint equation (the constraint’s limit”

•Allowable Increase: 

How much the constraint’s RHS can increase before the shadow price is no longer valid

•Allowable Decrease: 

How much the constraint’s RHS can decrease before the shadow price is no longer valid

The shadow price only applies to

changes within the allowable increase/decrease, any changes that go beyond   this can not use shadow price.

Constraint Conditions

0

•A constraint is in ‘Slack’ if

the left-hand side is less than
the right-hand side. 

•A constraint is in ‘Surplus’ if

the left-hand side is greater than the right-hand side.

•A constraint is ‘Binding’ if

the left-hand side is equal to
the right-hand side. 

Non-binding constraints will

always have zero as their shadow price, but a binding constraint isn’t always non-zero.