School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 3 | Part 5
The Simplex Method & Sensitivity Analysis
Spring 2020 - 2021
BMIS355- CHAPTER 3
, Outline
1. LP Model in equation form:
• Convert in-equalities to equation.
2. The Simplex Method:
◦ The iterative nature of the Simplex Method.
◦ Computational details of the Simplex algorithm.
3. Sensitivity Analysis:
◦ Algebraic Sensitivity Analysis: Changes in the right-hand side (RHS).
◦ Algebraic Sensitivity Analysis: Objective Function.
BMIS355- CHAPTER 3
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 3 | Part 5
The Simplex Method & Sensitivity Analysis
Spring 2020 - 2021
BMIS355- CHAPTER 3
, Outline
1. LP Model in equation form:
• Convert in-equalities to equation.
2. The Simplex Method:
◦ The iterative nature of the Simplex Method.
◦ Computational details of the Simplex algorithm.
3. Sensitivity Analysis:
◦ Algebraic Sensitivity Analysis: Changes in the right-hand side (RHS).
◦ Algebraic Sensitivity Analysis: Objective Function.
BMIS355- CHAPTER 3
