Q1. Brief the requirement of sensitivity analysis for the linear programming.
Q2. The heating and air-conditioning distributor should make quarterly purchasing decisions for a special kind of compressor. At the starting of each month, the company should purchase adequate compressors to satisfy the demand. Surplus purchases are carried over as inventory for the next month. The company consists of zero units on hand on 1st October and wants no inventory after December. Data on compressor demand, purchase price and inventory holding cost are given in the table shown below:
Compute the optimal decision for each possible value of state variable. Use the backward computational process for this Dynamic Programming problem.