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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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 Spring '11
 JackShennan

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