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LP Questions - MY LP MODEL QUESTIONS 1 A furniture...

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MY LP MODEL QUESTIONS 1- A furniture manufacturer has 6 units of wood and 28 hour of free time in which he will produce decorative screens. Two models have sold well in the past, so he will restrict himself to those two. He estimates that model A requires 2 units of wood and 7 hour of time, while model B requires 1 unit of wood and 8 hour of time. The prices of the models are \$ 120 and \$ 80 respectively. Model this problem as a linear programming problem if the furniture maker wants to maximize his sales revenue. Decision variables : : X1 Number of model A to be produced : X2 Number of model B to be produced Max Z = 120 X1 + 80 X2 Subject to : 2 X1 + X2 6 7 X1 + 8X2 28 X1 , X2 0 Answer : * Z = \$ 391,11 2- Kathleen Allen, an individual investor, has \$70,000 to divide among several investments. The alternative investments are municipal bonds with an 8.5% annual return, certificates of deposit with a 5% return, treasury bills with a 6.5% return, and a growth stock fund with a 13% annual return. The investments are all

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This note was uploaded on 10/01/2011 for the course MGT 603 taught by Professor Jackshennan during the Spring '11 term at University of Michigan.

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LP Questions - MY LP MODEL QUESTIONS 1 A furniture...

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