SKEDSOFT

Sensitivity analysis:(b) Basic variables

a)      If unit cost of loaded cell i.e.basic variable is changed, it affects the opportunity costs of several cells.

b)      In case the unit cost of transportation for the cell XE is θ instead of 16, and other values remaining unchanged.

c)       Now opportunity costs of other cells.

a)      Cells XA and XB is positive when θ is > than 19. Cell XC is positive when θ is > 17 and cell XD is positive when θ is > 27. Other cells are not influenced by θ .

b)      If unit cost of transportation increase and becomes 17, the present optimum may change.

c)       In case the unit cost of transportation of the cell XA is reduced, the solution will still remain optimum, as our objective is to minimize the total transportation cost.

d)      A point to note here is we have used Northwest corner method and Vogel’s approximation method to get basic feasible solution.

e)      Also we have discussed the least cost method and there are some methods such as row minimum and column minimum methods.

f)       These methods attempt to optimize the subsystem and do not consider marginal trade-offs. Therefore, such methods have no merit to serve useful purpose.