07_Sensitivity Analysis Flashcards by isabel Wang | Brainscape

Q

How is the method of reduced cost applicable?

A

only to adding one more product
if you choose between two you have to add both products to the tableau and use the simplex algorithm
calculating the reduced cost for the 2nd product again using the new shadow prices will return negative value

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Q

Variation of the objective function coefficient

Cases

A

What is the contribution margin of NBV Decision Variable so that it is in the basis?
How much can the contribution margin of „Wheat Beer“ change without changing the optimal basis?

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Q

A

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