The Tolerance Approach to Sensitivity Analysis in Linear Programming

Published Online:https://doi.org/10.1287/mnsc.31.5.564

In constrast to “ordinary” sensitivity analysis in linear programming, the tolerance approach considers simultaneous and independent changes in the objective function coefficients and in the right-hand side terms. This approach yields a maximum tolerance percentage such that, as long as selected coefficients or terms are accurate to within that percentage of their estimated values, the same basis is optimal. In particular, if the objective function coefficients are accurate to within the maximum tolerance percentage of their specified values, then the same solution is optimal.

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