handout03 - period 1 $13 period 2 $14 period 3 $15 A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
IEOR 162 Linear Programming Spring 2007 Discussion Section Handout 3 Some modeling problems: 1. It’s Monday and you have $200. You’re objective is to maximize the amount of money you have on Friday. Each day of the week, you can choose to invest any amount in a bond that requires you to pay $1 the first day, $2 the second day, and then you receive $4 on the third day. The total amount of money you have at the end of each day must be non-negative. Formulate a linear program that will maximize the amount of money you have on Friday. 2. (3.10.2 in the book) A company faces the following demands during the next three periods: period 1, 20 units; period 2, 10 units; period 3, 15 units. The unit production cost during each period is as follows:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: period 1 - $13; period 2 - $14; period 3 - $15. A holding cost of $2 per unit is assessed against each period’s ending inventory. At the beginning of period 1, the company has 5 units on hand. In reality, not all goods produced during a month can be used to meet the current month’s demand. To model this fact, we assume that only one half of the goods produced during a period can be used to meet the current period’s demands. Formulate an LP to minimize the cost of meeting the demand for the next three periods. Convert the following LP into standard form: 3. min 3 x 1 + x 2 s.t. x 1-2 x 2 ≥ 1 4 x 1 + x 2 ≤ 10 x 1 ≥ 1...
View Full Document

Ask a homework question - tutors are online