Sensitivity Analysis - Coefficient Matrix Previous Next
Initial Tableau:
We now conclude that  is a sensitive parameter because making small change in its value (adding 1 in this case) changes the optimal solution. It also changes the value of  ( increasd from 70 to 80), as indicated by the nonzero value of the shadow price corresponding to . The shadow prices give the marginal values of the resources. Thus, since the shadow price for resource 2 is 10, for each (small) increase or decrease in the amount of resource 2 made available (the value of ),  will change by the shadow price times that amount (10 times the change in ).
What if we change the coefficient of a nonbasic variable () in a constraint? See what happens when .