Create the spreadsheet model and use solver

Assignment Help Operation Management

Reference no: EM132706529

SESSION 7

A trust officer at the Blacksburg National Bank needs to determine how to invest $150,000 in the following collection of bonds to maximize the annual return.

Bond	Annual Return	Maturity	Risk	Tax Free
A	9.5%	Long	High	Yes
B	8.0%	Short	Low	Yes
C	9.0%	Long	Low	No
D	9.0%	Long	High	Yes
E	9.0%	Short	High	No

The officer wants to invest at least 40% of the money in short-term issues and no more than 20% in high-risk issues. At least 25% of the funds should go in tax-free investments, and at least 45% of the total annual return should be tax free.
1. Formulate the LP model for this problem.
2. Create the spreadsheet model and use Solver to solve the problem.

SESSION 8:

A furniture manufacturer produces two types of tables - country and contemporary - using three types of machines. The time required to produce the tables on each machine is given in the following table:

Machine	Country	Contemporary	Total Machine Time Available Per Week
Router	3.5	4.0	1,000
Sander	4.5	6.5	2,000
Polisher	3.0	2.0	1,500

Country tables sell for $395 and contemporary tables sell for $515. Management has determined that at least 25% of the tables made should be country and at least 38% should be contemporary. How many of each type of table should the company manufacture if it wants to maximize its revenue?
1. Formulate an LP model for this problem
2. Create the spreadsheet model and use Solver to solve the problem.

Reference no: EM132706529

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