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IEOR E4007
G. Iyengar
February 23rd, 2009.
Homework #3
Due
: March 8th, 2009.
1.
Exercise 3.15
from
Optimization methods for finance
2.
Simple problems on integer programming
Formulate,
but do not solve
, the following mathematical programming problems as
integer linear programs.
(a) A courier traveling to Europe can carry up to 50 kilograms of a commodity, all of
which can be sold for $40 per kilogram. The roundtrip air fare is $450 plus $5 per
kilogram of baggage in excess of 20 kilograms (one way). Ignoring any possible
prots on the return trip, should the courier travel to Europe and, if so, how much
of the commodity should be taken along in order to maximize his pro±ts?
(b) A copying service incurs machine operating costs of:
$0.10 for copies 1 to 4,
$0.05 for copies 5 to 8,
$0.025 for copies 9 and over,
and has a capacity of 1000 copies per hour. One hour has been reserved for
copying a 10page article to be sold to MBA students. Assuming that all copies
can be sold for $0.50 per article, how many copies of the article should be made?
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 Summer '09
 OptimizationModelsandMethods
 Optimization

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