As we have discussed in previous articles, the Shadow Price of a constraint represents the rate of change of the optimal value as a result of a marginal change in the right-hand side of a constraint. “Marginal” is understood as a modification that does not change the geometry of the problem, that is to say, […]

# Archivo de Etiquetas (Tags) | sensitivity analysis

## How to Calculate the Shadow Price of a Constraint

The Shadow Price of a constraint in Linear Programming indicates how much the value of an objective (optimal) function changes due to a marginal variation in the right-hand side of a constraint. It is assumed that the rest of the model’s parameters remain constant. It should be noted beforehand that the Shadow Price can be […]

## Changes in the Right Hand Side (RHS) of the Constraint (Sensitivity Analysis in Linear Programming)

Vector on Right Hand Side (RHS) associated with the constrains of a Linear Programming model may have different practical interpretations such as the availability of inputs for the manufacture of certain products, limiting of capacity, demand requirements, among other. As a result it is interesting to analyze the impact of the change of one or more […]