Business Management 2321 Case Study #1 (Version B)
Due at the beginning of class
Thursday, August 30th
Fixed Rate Mortgage Loans vs. Adjustable Rate Mortgage Loans
Mortgage loans are available with many different terms. These include different interest ra

Portfolio Selection
Low Income Mortgage
Conventional Mortgage
Government Mortgage
Bond Investment
Stock Investment
Futures Trading
Solution
$5,000,000.00
$5,000,000.00
$6,250,000.00
$2,500,000.00
$3,750,000.00
$2,500,000.00
Left Hand Side (LHS)
Maximize
7

BusMgt 2321 Case Study #2
Due Tuesday (September 11th) at the beginning of class
Part A - Production Problem
Pentagonal Pictures produces motions pictures in Hollywood and distributes them nationwide. Currently, it is
considering 10 possible films; these

Business Management 2321 Case Study #3
Due Tuesday (October 9th) at the beginning of class
Version A
Part I Scheduling Aircraft
Jane Buckeye is employed by Wings Airlines and has been given the following schedule of flights among the
three cities it serve

Business Management 2321 Case Study #1 (Version A)
Due at the beginning of class
Thursday, August 30th
Fixed Rate Mortgage Loans vs. Adjustable Rate Mortgage Loans
Mortgage loans are available with many different terms. These include different interest ra

1. Business Management 331 Case Study #3
Due Wednesday (May 4th) / Thursday (May 5th) at the beginning of class
Version C
Part I Scheduling Aircraft
Jane Buckeye is employed by Wings Airlines and has been given the following schedule of flights among the

8 linear programming formulations to be covered in class
Formulation #1: Portfolio Selection
I have inherited $100,000 that I would like to invest in 4 stocks and/or government bonds. The stocks are listed below:
Investment
Return
Atlantic Oil
7.3%
Pacifi

Chapter 2:
Linear Programming (LP)
Models:
Excel Methods & SOLVER
Getting Started
Create a spreadsheet with clear labels and
dedicated cells for each of the problem
elements:
Decision Variables (Changing Cells)- the
variables in the objective function rel

Business Management 2321 Case Study #1 (Version C)
Due at the beginning of class
Thursday, August 30th
Fixed Rate Mortgage Loans vs. Adjustable Rate Mortgage Loans
Mortgage loans are available with many different terms. These include different interest ra

Chapter 6
Integer and Goal
Programming Models:
Integer & Binary Applications
Using Integers- General Rules
When a Decision Variable can be counted
(discrete), we impose integer conditions.
Examples- Units to produce or product
mix, scheduling people.
When

Chapter 8 continued:
Decision Analysis
Decision Trees
Decision Trees
Can be used instead of a table to show
alternatives, outcomes, and payoffs
Consists of nodes and arcs
Decision node
Outcome node
Shows the order of multiple decisions and
multiple outcom

Chapter 3:
Linear Programming (LP)
Modeling Applications
Summary- The
FORMULATION Steps
Define the decision variables
Formulate the LP model using the decision
variables
Write the objective function equation
Write each of the constraint equations
Implemen

Chapter 5:
Transportation, Assignment
and Network Models
Network Flow Models
Consist of a network that can be
represented with nodes and arcs in
applications such as:
1.
2.
3.
4.
5.
6.
Transportation Model
Transshipment Model
Assignment Model
Maximal Flow

Transshipment Linear Programming Formulation
XAE1
Solution
Minimize
Product 1
Source A
Source B
Source C
Source D
Warehouse E
Warehouse F
Destination G
Destination H
Destination I
Destination J
Product 2
Source A
Source B
Source C
Source D
Warehouse E
War

Chapter 8:
Decision Analysis
Decision Analysis
An analytic and systematic approach to
the study of decision making
Based on logic
Considers all possible alternatives
Examines all available information about the
future
Applies the decision modeling approac

Chapter 5:
Transportation, Assignment
and Network Models
(Assignment, Maximum Flow,
Spanning Tree)
Reality Check on Modeling
Each path in the network diagram,
represented by an arrow, is a Decision
Variable. If the cost from point A to point B
is $10, doe

Chapter 1:
Introduction to Managerial
Decision Making
Wrestling with Decision
Making
Can you
afford a
$273,000
Lamborghini
Murcielago?
What is Decision Modeling (DM)
DM is a scientific approach
to managerial decision
making that:
Organizes raw data into m

Business Management 2321 Case Study #1 (Version D)
Due at the beginning of class
Thursday, August 30th
Fixed Rate Mortgage Loans vs. Adjustable Rate Mortgage Loans
Mortgage loans are available with many different terms. These include different interest ra

Business Management 2321 Grade Calculation Spreadsheet
Enter the percentages for each exam in the appropriate shaded boxed cells.
Do not modify any of the equations in the spreadsheet.
Exams
Possible
Points
Percent or
Points
Earned
Points
150
0.00
Final E

Signature #1: _
Signature #2: _
Signature #3: _
Signature #4: _
Recitation Worksheet #5
Determine the minimum cost to connect all of the nodes below. BOLDLY highlight the arcs that connect the
nodes at minimal cost. Please note that there are different co

Signature #1: _
Signature #2: _
Signature #3: _
Signature #4: _
Recitation Worksheet #4
Formulate the transshipment problem at the right
as a linear program. All decision variables should
have the format AB where A is the source node
and B is the destinat