Describe how a smaller company could benefit from utilizing the 100% rule.

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PART A: 400-500 WORDS

 
The 100% rule is used in decision modeling to determine whether or not a change in project constraints or variables will affect the outcome of a decision. Under the 100% rule, any combination changes can occur without a change in the solution, as long as the total percentage deviation from the coordinate extremes does not exceed 100%.
 
Large companies are constantly making changes to projects and frequently use the 100% rule to compare simultaneous changes and how they will impact the bottom line. Now, take into account a small company with less than 50 employees, and describe how a smaller organization could benefit from utilizing the 100% rule.
 

  • Describe how a smaller company could benefit from utilizing the 100% rule.
  • In your opinion, would it be effective for smaller organizations to utilize this rule?
  • Can the coefficient of a decision making variable change while the optimal point remains the same?
  • Does the feasible region change?
  • Can RHS value of a constraint be changed?
  • Does the feasible region change?
  • Can OFC values be changed?
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