Question 4: Sensitivity Analysis (13 Points)
Excel's Solver tool has been used in the spreadsheet below to
solve a linear programming problem with a minimization
objective function and all ? constraints.
1) What are the Binding Constraints and the Optimum
amount of Objective Function?
2) What are the slack/surplus values for Material 1,
Material 2 and Material 3?
3) Looking at the Shadow prices, how much would the
objective function change by if Material 2 is increases by
5 units?
4) What % of available Material 3 can be reduced without it
affecting the current (given) optimum solution?
5) Why the amount of reduced costs are zero?
Given results after developing the excel LP and Solver:
