ps5 - z * from increas-ing the supply at node 2 from 200 to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
OR Models Problem Set # 5 Fall Semester 2011 Due: Tuesday, November 1 1. Solve problem 3 from Chapter 9 of Jensen and Bard. 2. Consider problem 8 from Chapter 9 of Jensen and Bard. (i) You don’t have to classify the problem with the level of detail described in Section 9.5. Instead, state whether the problem is a convex program. Show your reasoning. (ii) For each of (a)-(e) either find the global optimal solution or state that the problem is infeasible or unbounded. (i) Report the solution to parts (a) and (b) from the text. Qualitatively explain the difference in the solutions to (a) and (b) in terms of using a small number of arcs versus “spreading out” the flow. Explain intuitively why this is the case. (ii) For both parts (a) and (b) try starting with an initial solution other than all flows being zero. What happens? Why? (iii) For part (b), what is your prediction of the change in optimal cost
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: z * from increas-ing the supply at node 2 from 200 to 201 and simultaneously changing the supply at node 4 from -400 to -401? Explain. What happens when you resolve the model? 4. A company is planning on spending $10,000 on advertising. It costs $3,000 per minute to advertise on television and $1,000 per minute to advertise on radio. If the firm buys x 1 minutes of television advertising and x 2 minutes of radio advertising, its revenue, in thousands of dollars, is given by f ( x 1 ,x 2 ) =-2 x 2 1-x 2 2 + x 1 x 2 +8 x 1 +3 x 2 . (a) Determine how to spend the advertising budget so as to maximize revenue by using the method of Lagrange multipliers. (b) Are you guaranteed that the solution from (a) is a global optimum? Justify your response. (c) What is the marginal rate at which the optimal revenue increases as the advertising budget is increased?...
View Full Document

This note was uploaded on 12/19/2011 for the course M E 366l taught by Professor Staff during the Fall '08 term at University of Texas.

Ask a homework question - tutors are online