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Solver now displays the following window (assuming your model is correct and there are no errors; otherwise you will get an error message and you must debug your model):

Select the first two reports: 'Answer' and 'Sensitivity'. Click OK.

Spreadsheet In Slack

10. Solver returns your spreadsheet with the optimal solution in the Changing Cells and the optimal objective function value in the Target Cell. Note also that two new sheets have been added to your workbook as tabs on the bottom of the spreadsheet: the Answer Report and the Sensitivity Report (not shown).

11. Click on the Answer Report tab to display the report:

Adjustable Cells is another name for Changing Cells.

Original Values found by Solver on Target Cell and Adjustable Cells are displayed but ignored by Solver.

Final Values for Target Cell and Adjustable Cells are the same as those computed in the spreadsheet.

'Slack' refers to both slack and surplus variables. (A surplus is simply a slack in the ' ≥ ' direction.)

If Status is 'Binding', Slack must be 0; if 'Not Binding', Slack must be a positive number.

12. Click on the Sensitivity Report tab to display that report:

'1E+30' reflects sloppy report documentation. It should actually say 'No Limit'.

Shadow Price is the rate of change in the value of the objective function per unit increment in the RHS of that constraint. If the allowable increase (or decrease) is less than unity, the shadow-price rate applies only up to that fractional change.

Optional: Here's a very clear explanation of the differences between Shadow Price and Dual Price.

Reduced Cost is the effect on the objective function of forcing a decision variable with a Final Value of zero to assume a Final Value of one (that is, effect of forcing production of one unit of a product which is not optimal to produce on its own merits).

Note that in the Constraints section, if Final Value = Constraint RHS, then slack must be zero and the constraint is binding; since the resource is therefore in short supply, it should have a non-zero Shadow Price. If Final Value ≠ Constraint RHS, then slack must be positive, Shadow Price must be zero and the constraint is not binding; either the Allowable Increase or the Decrease will show No Limit (1E+30) depending on which direction is not critical (where slack/surplus keeps growing).

Voilà! You have successfully optimized Banana Computer's production decision.

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Updated: Apr 25, 2021

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