April 2019
Beginner to intermediate
1240 pages
45h 43m
English
Content preview from Data Science for Business and Decision Making
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17.6 Sensitivity Analysis
As presented in Section 16.5 of the previous chapter, one of the hypotheses of a linear programming model is to assume that all the model parameters (objective function coefficients cj, constraint variable coefficients aij, and independent terms bi) are deterministic, that is, constant and known with certainty. However, many times, the estimation of these parameters is based on future forecasts, such that changes may happen until the final solution is implemented in the real world. As examples of changes, we can mention changes in the amount of resources available, launching of a new product, variation in a product’s price, increase or decrease in production costs, among others.
Therefore, the sensitivity analysis
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