Econ 3300 - 1 Review for in-class portion of Test #1...

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Review for in-class portion of Test #1 (take-home problem will involve use of Excel to solve an LP model) 1 . Specify (set up) the linear programming model for the following problem, being sure to clearly define the decision variables and indicate any restrictions related to the nature of the decision variables. The owner-operator of a truck is a member of a consortium of approved shippers. He identified (in a computerized database) 7 requests, each to have cargo transported from Atlanta to New York City. He wants to decide which of the 7 requests to accept so as to maximize the total value of the cargo transported (in a single trip). His truck has a capacity to transport at most 10 tons of cargo. He wants to accept at least three requests. For safety reasons, he can accept at most one of requests 1 and 2. For each request, the value and weight of the cargo needing transport are given in the table below. [Source: adapted from Balakrishnan et al (2007).] Reques t Value of cargo ($) Weight of cargo (tons) 1 7600 2.5 2 6000 3.2 3 4800 2.0 4 3200 3.5 5 6800 3.8 6 4000 5.0 7 5600 1.5 2 . Specify (set up) the linear programming model for the following problem, being sure to clearly define the decision variables and indicate any restrictions related to the nature of the decision variables. An airline with an aging fleet of jets needs to decide how many model A, model B, and model C jets to purchase so as to maximize total annual passenger-carrying capacity. The airline has $800 million available for the purchase of new jets and has $24 million available to cover annual maintenance costs of any new jets purchased. The airline wants to purchase at most 25 jets. Also, it wants at least 30% of the new jets it purchases to be model A jets. The table below provides, for each model, the purchase price, estimated annual maintenance cost, and annual passenger-carrying capacity of a single jet. [Source: adapted from Balakrishnan et al (2007).] Jet Purchase price Annual maintenance cost Annual passenger-carrying capacity Model A $35 million $ .8 million 125,000 Model B $22 million $ .5 million 81,000 Model C $28 million $ .4 million 100,000 3. For each item below, circle the letter corresponding to the correct response:
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Econ 3300 - 1 Review for in-class portion of Test #1...

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