1. MATH143 Lec 9 Quantitative Methods
Charles W Jackson
Andrew Nunekpeku
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

2. Agenda for today Quiz 2 today Sensitivity Analysis
Continuing the case of Blue Ridge Hot Tubs
Vocabulary building
Shadow Prices
Reduced Costs, decisions on the margin
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

3. Blue Ridge Hot Tubs
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

4. Blue Ridge Hot Tubs
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

5. Solver Found Optimum
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

6. Classifying the Constraints
Since Pumps and Labour are entirely used up, the constraint is EQUALS, not less than, and we call these constraints BINDING. These resources are keeping us from making more money! Slack is zero.
But Tubing is NON-BINDING, as we have some left over, and we have SLACK of 168 feet of tubing.
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

7. Excel Summary Report
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

8. Coefficients in LP Problems
aij are BOM coefficients, recipe ratios. bi are the resource constraints, ci are the objective coefficients (per activity profits/costs). Any of these could change.
Discuss some examples….
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018

9. But What if Coefficients Changed?
There is lots to describe here. Look over the Chapter 4 presentation in Ragsdale.
MATH143 – Fall 2011 – Thursday Week 3
7/23/2018