Sensitivity: Algebraic explanation

Changes in the coefficients of the objective function

Let us start with the Production Mix Problem example, which in the standard form is:

\(max Z = 300x_{1} + 250x_{2} + 0s_{1} + 0s_{2} + 0s_{3}\)

subject to:

\(2x_{1} + x_{2} + s_{1} = 40\)
\(x_{1} + 3x_{2} + s_{2} = 45\)
\(x_{1} + s_{3} = 12\)

The final Tableau is:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

0

0

0

250/3

650/3

6350

\(s_{1}\)

0

0

0

1

-1/3

-5/3

5

\(x_{2}\)

0

0

1

0

1/3

-1/3

11

\(x_{1}\)

0

1

0

0

0

1

12

Let us assume we want to make a change in coefficient \(c_{1}\) of \(\Delta c_{1}\). The objective function becomes:

\(max Z = (300 +\Delta c_{1})·x_{1} + 250x_{2}\)

It can be proved that the final Tableau now becomes:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

\(-\Delta c_{1}\)

0

0

250/3

650/3

6350

\(s_{1}\)

0

0

0

1

-1/3

-5/3

5

\(x_{2}\)

0

0

1

0

1/3

-1/3

11

\(x_{1}\)

0

1

0

0

0

1

12

The Simplex method requires that the Tableau is in canonical form. Thus, we need to add the last row times \(\Delta c_{1}\) to the first row to fulfill this:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

0

0

0

250/3

650/3 + \(\Delta c_{1}\)

6350 + 12·\(\Delta c_{1}\)

\(s_{1}\)

0

0

0

1

-1/3

-5/3

5

\(x_{2}\)

0

0

1

0

1/3

-1/3

11

\(x_{1}\)

0

1

0

0

0

1

12

And taking into account that the coefficient of \(s_{3}\) needs to be positive for \(x_{1}\) to remain in the basis, \(\Delta c_{1}\) cannot be lower than -650/3 and can increase up to infinity.

Let us now assume we want to make a change in coefficient \(c_{2}\) of \(\Delta c_{2}\). The objective function becomes:

\(max Z = 300·x_{1} + (250 +\Delta c_{2})·x_{2}\)

The final Tableau now becomes:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

0

\(-\Delta c_{2}\)

0

250/3

650/3

6350

\(s_{1}\)

0

0

0

1

-1/3

-5/3

5

\(x_{2}\)

0

0

1

0

1/3

-1/3

11

\(x_{1}\)

0

1

0

0

0

1

12

Again, the Simplex method requires that the Tableau is in canonical form. Thus, we need to add the second last row times \(\Delta c_{2}\) to the first row to fulfill this:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

0

0

0

250/3 + \(\Delta c_{2}/3\)

650/3 - \(\Delta c_{2}/3\)

6350 + 11·\(\Delta c_{2}\)

\(s_{1}\)

0

0

0

1

-1/3

-5/3

5

\(x_{2}\)

0

0

1

0

1/3

-1/3

11

\(x_{1}\)

0

1

0

0

0

1

12

And taking into account that the coefficients of \(s_{2}\) and \(s_{3}\) need to be positive for \(x_{2}\) to remain in the basis, \(\Delta c_{2}\) cannot be lower than -250 nor higher than 650.

Changes in the constraint independent terms

Now let us see what is the effect of changing b, for instance decreasing \(b_{1}\) an amount equal to \(\Delta b_{1}\). In the original problem formulation, this means:

\(2x_{1} + x_{2} + s_{1} = 40 - \Delta b_{1}\)

\(x_{1} + 3x_{2} + s_{2} = 45\)

\(x_{1} + s_{3} = 12\)

Changing the Right Hand Side by \(\Delta b_{1}\) is equivalent to changing \(s_{1}\) an amount of \(\Delta b_{1}\). Note that \(s_{1}\) is in the basis, thus for it to remain in the basis, it must satisfy:

\(s_{1}=5 + \Delta b_{1} \geq 0\)

\(\Delta b_{1} \geq -5\)

Now, take the second constraint and let us apply the same change:

\(2x_{1} + x_{2} + s_{1} = 40\)

\(x_{1} + 3x_{2} + s_{2} = 45 - \Delta b_{2}\)

\(x_{1} + s_{3} = 12\)

Again, this is equivalent to:

\(2x_{1} + x_{2} + s_{1} = 40\)

\(x_{1} + 3x_{2} + s_{2} + \Delta b_{2} = 45\)

\(x_{1} + s_{3} = 12\)

Which can be regarded as a change of \(\Delta b_{2}\) in \(s_{2}\). Now, if we change \(s_{2}\) from \(s_{2}=0\) to \(s_{2} =\Delta b_{2}\) in the final Tableau:

Basic

z

\(x_{1}\)

\(x_{2}\)

\(s_{1}\)

\(s_{2}\)

\(s_{3}\)

RHS

Ratio

1

0

0

0

250/3·\(\Delta b_{2}\)

650/3

6350

\(s_{1}\)

0

0

0

1

-1/3 ·\(\Delta b_{2}\)

-5/3

5

\(x_{2}\)

0

0

1

0

1/3 ·\(\Delta b_{2}\)

-1/3

11

\(x_{1}\)

0

1

0

0

0 ·\(\Delta b_{2}\)

1

12

The basis remains unchanged as long as all the constraints are still met:

\(s_{1} - 1/3 · \Delta b_{2} = 5\)

\(x_{2} + 1/3· \Delta b_{2} = 11\)

\(x_{1} + 0 ·\Delta b_{2} = 12\)

\(s_{1} = 5 + 1/3 · \Delta b_{2} \geq 0 (\Delta b_{2} \geq -15)\)
\(x_{2} = 11 - 1/3· \Delta b_{2} \geq 0 (\Delta b_{2} \leq 33)\)
\(x_{1} = 12 - 0·\Delta b_{2} \geq 0 (\Delta b_{2} \leq Inf)\)