Chapter 3
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The change in the value of the objective function per unit increase in the right-hand side of a constraint. Also referred to as the shadow price by some computer packages for solving linear programs including Excel Solver.
Dual value
is the amount the coefficient may increase (decrease) without causing any change in the values of the decision variables in the optimal solution. can be used to calculate the range of optimality.
Objective function allowable increase (decrease)
is equal to the dual value on the nonnegativity constraint for that variable.
Reduced cost
The range of values over which the dual value is applicable.
Range of feasibility
The range of values over which an objective function coefficient may vary without causing any change in the values of the decision variables in the optimal solution.
Range of optimality
A cost that depends on the decision made.
Relevant cost
is the amount the right-hand side may increase (decrease) without causing any change in the dual value for that constraint. can be used to calculate the range of feasibility for that constraint.
Right-hand-side allowable increase (decrease)
The study of how changes in the coefficients of a linear programming problem affect the optimal solution.
Sensitivity analysis (postoptimality analysis)
A cost that is not affected by the decision made. It will be incurred no matter what values the decision variables assume
sunk cost