ON THE ANALYSIS OF A SIMPLEX LINEAR PROGRAMMING SOLUTION TABLEAU-WITH REFERENCE TO NET REVENUE STABILITY LIMITS

An assumption in a conventional net revenue stability analysis of a linear programming solution tableau is that net revenues are independent. For many activities this assumption is violated in that changes in a particular activity's net revenue may nell be associated with changes in other activities' net revenues. The significance of the independence assumption is examined for an example problem, and a method of calculating the range over which a particular activity's net revenue can vary without giving rise to a sub-optimal solution where activity net revenues are correlated is developed.