What does the term 'objective function allowable increase/decrease' refer to?

The term 'objective function allowable increase/decrease' specifically refers to the amount an objective coefficient can change without altering the optimal solution. In the context of linear programming, each variable in the objective function has a coefficient that indicates its contribution to the overall objective, whether it's to maximize profit or minimize costs.

When evaluating a linear programming model, sensitivity analysis is performed to determine how sensitive the optimal solution is to changes in these coefficients. The allowable increase specifies how much you can increase the coefficient before the current optimal solution changes, while the allowable decrease indicates how much it can decrease under the same condition. Staying within these bounds ensures that the solution remains optimal, reinforcing the idea that small changes in the coefficients will not affect the overall decision-making outcome.

This concept underscores the importance of understanding the stability of an optimal solution in relation to varying parameters, which is key in practical decision-making scenarios.