What does the term “binding constraint” mean in sensitivity analysis?
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In sensitivity analysis, a binding constraint is a constraint that is satisfied exactly at its limit, meaning the optimal solution lies on the constraint boundary, and any change to it would alter the optimal solution.
A "binding constraint" in sensitivity analysis refers to a constraint that is active at the optimal solution, meaning it holds equality (i.e., the solution lies exactly on the constraint's boundary). Changing a binding constraint's right-hand side will affect the optimal solution. These constraints directly influence the feasible region and the objective function's value.