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Decision Support Systems Components of a Decision Support System

Decision Support Systems Components of a Decision Support System. Sensitivity Analysis. Modeling Optimization Problems. X1 = 540 X2 = 252 Profit = $7668. Binding Constraints? Cutting & Dyeing and Finishing Slack Variables? Idle Capacity S1 = 0 S2 = 120 hours of sewing

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Decision Support Systems Components of a Decision Support System

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  1. Decision Support Systems Components of a Decision Support System SensitivityAnalysis

  2. Modeling Optimization Problems

  3. X1 = 540 X2 = 252 Profit = $7668

  4. Binding Constraints? Cutting & Dyeing and Finishing Slack Variables? Idle Capacity S1 = 0 S2 = 120 hours of sewing S3 = 0 S2 = 18 hours of I & P Sensitivity Analysis: 1. Changes in OF coefficient values without changing the optimal solution - Values of Decision Variables (X1, X2): allowable increases/decreases Shadow Prices: 1. Value of each “resource” at optimality 2. Only valid relative to allowable increase/decrease; current solution remains feasible (solution changes)

  5. S: X1 D: X2

  6. Shadow Price of Finishing Time:$6.9375 Finishing Time is the most valuable resource (original problem) because its shadow price is the highest Change RHS from 709 to 899 (obtain an additional 190 hours), will increase profit by $6.9375 for each additional hour within the allowable range 190 x $6.9375 + $7674.9375 = $8993.0625 (new objective function value)

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