Refer to Sec. 3.4 (subsection entitled "Controlling Air Pollution") for the Nori & Leets Co. problem. After the OR team obtained an optimal solution, we mentioned that the team then conducted sensitivity analysis. We now continue this story by having you retrace the steps taken by the OR team, after we provide some additional background.
(a) Use any available linear programming software to solve the model for this problem as formulated in Sec. 3.4. In addition to the optimal solution, obtain a sensitivity report for performing postoptimality analysis. This output provides the basis for the following steps.
(b) Ignoring the constraints with no uncertainty about their parameter values (namely, xj ≤ 1 for j = 1, 2, . . . , 6), identify the parameters of the model that should be classified as sensitive parameters. (Hint: See the subsection "Sensitivity Analysis" in Sec. 4.7.) Make a resulting recommendation about which parameters should be estimated more closely, if possible.
(c) Analyze the effect of an inaccuracy in estimating each cost parameter given in Table 3.14. If the true value is 10 percent less than the estimated value, would this alter the optimal solution? Would it change if the true value were 10 percent more than the estimated value? Make a resulting recommendation about where to focus further work in estimating the cost parameters more closely.
(d) Consider the case where your model has been converted to maximization form before applying the simplex method. Use Table 6.14 to construct the corresponding dual problem, and use the output from applying the simplex method to the primal problem to identify an optimal solution for this dual problem. If the primal problem had been left in minimization form, how would this affect the form of the dual problem and the sign of the optimal dual variables?
(e) For each pollutant, use your results from part (d) to specify the rate at which the total cost of an optimal solution would change with any small change in the required reduction in the annual emission rate of the pollutant. Also specify how much this required reduction can be changed (up or down) without affecting the rate of change in the total cost.
(f) For each unit change in the policy standard for particulates given in Table 3.12, determine the change in the opposite direction for sulfur oxides that would keep the total cost of an optimal solution unchanged. Repeat this for hydrocarbons instead of sulfur oxides. Then do it for a simultaneous and equal change for both sulfur oxides and hydrocarbons in the opposite direction from particulates.