The Sensitivity Report provides classical sensitivity analysis information for both linear and nonlinear programming problems. It is available for models that do not contain any integer or binary constraints (which we will learn about later in this course). In this module we will focus on the Sensitivity Report for linear models.

1. How To Get Sensitivity Report In Excel Solver Mac
2. Excel Solver Sensitivity Analysis Explained
3. Excel Solver For Mac Nt Generating Sensitivity Reports

An example of a Sensitivity Report generated for a simple Product Mix example is shown below.

Interpreting Reduced Costs and Shadow Prices

To derive the Lagrange multiplier, after you click on 'Solve' in Solver, the Solver Results screen shown in Exhibit 10.7 will appear. On this screen, under 'Reports,' select 'Sensitivity.' This will generate the sensitivity report shown in Exhibit 10.8. Excel does not allow Integer constraints in Sensitivity and Limit reports. You will need to return to the Solver Parameters dialog box (see Figure 6-18) and delete the inte- ger parameters for Houses and Lots to get these reports. These reports involve graphing several parameters in several equations.

Reduced Costs are the most basic form of sensitivity analysis information. The reduced cost for a variable is nonzero only when the variable’s value is equal to its upper or lower bound at the optimal solution. In this example problem, all variables have a lower bound of zero (i.e. a non-negativity constraint) and no upper bound. Moving the variable’s value away from the bound (or tightening the bound) will worsen the objective function’s value; conversely, “loosening” the bound will improve the objective. The reduced cost measures the change in the objective function’s value per unit increase in the variable’s value. In the example Sensitivity Report above, the dual value for producing speakers is -2.5, meaning that if we were to tighten the lower bound on speakers (move it from 0 to 1), our total profit would decrease by $2.50.

The Shadow Price for a constraint is nonzero only when the constraint is equal to its bound. This is called a binding constraint, and its value was driven to the bound during the optimization process. “Tightening” a binding constraint (making it more strict) will worsen the objective function’s value; conversely, loosening a binding constraint will improve the objective. The Shadow Price measures the change in the objective function’s value per unit increase in the constraint’s bound. In the example report above, increasing the number of electronics units from 600 to 601 will allow the Solver to increase total profit by $25.

The Allowable Increase and Allowable Decrease fields in the report show the range of increases and decreases for which the Reduced Costs and Shadow Prices remain constant.

How to do sensitivity analysis with data table in Excel?

How To Get Sensitivity Report In Excel Solver Mac

Let’s say you have a chair shop and sold chairs as below screenshot shown. Now, you want to analyze how the price and sales volume affect the profit of this shop simultaneously, so that you can adjust your sales strategy for better profit. Actually, the sensitivity analysis can solve your problem.

Do sensitivity analysis with data table in Excel

This method will apply the Data Table feature to do a sensitivity analysis in Excel. Please do as follows:

Excel Solver Sensitivity Analysis Explained

1. Finish the Profit & Loss Statement table as below screenshot shown:
(1) In Cell B11, Please type the formula =B4*B3;
(2) In Cell B12, please type the formula =B5*B3;
(3) In Cell B13, please type the formula =B11-B12;
(4) In Cell B14, please type the formula =B13-B6-B7.

2. Prepare the sensitivity analysis table as below screenshot shown:
(1) In Range F2:K2, please type the sales volumes from 500 to 1750;
(2) In Range E3:E8, please type the prices from 75 to 200;
(3) In the Cell E2, please type the formula =B14

3. Select the Range E2:K8, and click Data > What-If Analysis > Data Table. See screenshot:

4. In the popping out Data Table dialog box, please (1) in the Row input cell box specify the cell with chairs sales volume (B3 in my case), (2) in the Column input cell box specify the cell with chair price (B4 in my case), and then (3) click the OK button. See screenshot:

5. Now the sensitivity analysis table is created as below screenshot shown.

You can easily get how the profit changes when both sales and price volume change. For example, when you sold 750 chairs at price of $125.00, the profit changes to $-3750.00; while when you sold 1500 chairs at price of $100.00, the profit changes to $15000.00.

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Excel Solver For Mac Nt Generating Sensitivity Reports

• To post as a guest, your comment is unpublished.
  Nice. Thank you
• To post as a guest, your comment is unpublished.
  I built an Excel sensitivity analysis tool - https://causal.app/sensitivity. It figures out which variables in your model are the most important, and shows you what happens if you vary each variable one by one.
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  Cell A11 should be Sales; Cell A12 should be Cost of Sales; Cell A13 should be Gross Profit while Cell A14 should be Operating Profit.
  Celestine B. Etouwem.