Management Science

Formulate an lp model to represent the decision

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Unformatted text preview: ginal cost, DV will be active variable (has positive optimal value) Consolidate Case Profits=Revenue- Expense Profits=sX- (f+vX) S=selling price, f=fixed cost, v=variable cost/unit, x=# units sold 1. Formulate an LP model to represent the decision situation faced by Consolidated including: Slack: amt of 1). Define the decision variables. resources T: number of trailers to buy avail- amt of M: number of medium trucks to buy resources P: number of pickups to buy used. LS: monthly load in ton- mile contracted out to Speedie Surplus: 2). Define the objective function. actual amt- Min 2800T+2560M+2400P+0.50LS (Total monthly operating cost) min amt T=15,000+.28(10,000)=2800 3). Define the constraints for delivery requirement, capital budget, Based on optimal solution, ho...
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This test prep was uploaded on 04/02/2014 for the course MGT 2251 taught by Professor Chang during the Fall '08 term at Georgia Tech.

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