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What is 100 percent rule?

Updated: 9/18/2023
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11y ago

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The 100 Percent Rule for Simultaneous Changes in Right-Hand Sides:

The shadow prices remain valid for predicting the effect of simultaneously changing the right-hand sides of some of the functional constraints as long as the changes are not too large. To check whether the changes are small enough, calculate for each change the percentage of the allowable change (decrease or increase) for that right-hand side to remain within its allowable range. If the sum of the percentage changes does not exceed 100 percent, the shadow prices definitely will still be valid. (If the sum does exceed 100 percent, then we cannot be sure.)

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