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Unformatted text preview: substances: A B C D cost/kg in $ Component 1 (gr/kg) 100 80 40 10 40 Component 2 (gr/kg) 200 150 20 – 60 We assume that the cost of the Flling component is negligible. The food mixture shall be produced with minimal costs. ±ormulate the problem as an LP. Graph the feasible region. Is the feasible region convex? P3 A company has two investments with varying cash²ows available. The cash²ows (in thousands of dollars) are given in the following table: Time 1 2 3 Inv. 1-6-5 7 9 Inv. 2-8-3 9 7 At time 0, there are $ 10000 available for investment and at time 1 there are $ 7000 available for investment. Assume that the interest rate is r = 0 . 1. Set up an LP whose solution maximizes the NPV obtained from these investments. Graphically Fnd the optimal solution to the LP. Assume that any fraction (less or equal to 100 %) of investment may be purchased. 2...
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This note was uploaded on 01/21/2011 for the course IEOR 162 taught by Professor Zhang during the Fall '07 term at Berkeley.
- Fall '07