Xls 28 transportation applications

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Unformatted text preview: 00 • Corporate bonds: $950,000 • Gold stocks: $1,500,000 • Construction loans: $1,800,000 All the $5 million budget is fully used. (See the spreadsheet model in worksheet “Financial Investment” in file “Learning Kit.xls”.) 28 Transportation Applications Truck Loading Problem Truck loading problem involves deciding which items to load on a truck so as to maximize value of loaded items. Consider Goodman Shipping: • One truck has a capacity of 10,000 pounds is to be loaded. • Several other items are awaiting shipment. • Each item awaiting shipment has an associated dollar value and weight. • Objective — maximize total value of items loaded on the truck without exceeding the truck’s weight capacity. 29 Transportation Applications Goodman Shipping I tems Awaiting Shipment: 1 22,500 7,500 2 24,000 7,500 3 8,000 3,000 4 9,500 3,500 5 11,500 4,000 6 9,750 3,500 Partial or full amount of each item can be loaded. 30 LP Formulation • Decision variables Xi = proportion of item i loaded onto the truck (i =1, 2, 3, 4, 5, 6) • LP formulation Objective: Maximize load value = $22,500 X1+ $24,000 X2 + $8,000 X3 + $9,500 X4 + $11,500 X5 + $9,750 X6 subject to: 7,500 X 1 +7,500 X 2+ 3,000 X3+ 3,500 X4 + 4,000 X5 + 3,500 X6 < 10,000 (Truck capacity) X1 < 1 X2 < 1 (Maximum prop...
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This note was uploaded on 11/04/2012 for the course IS CB2505 taught by Professor Tommylau during the Spring '12 term at City University of Hong Kong.

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