How to formulate a linear programming model, Operation Management

Assignment Help:

George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%.

a- Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.

b- Find the optimal solution using the graphical solution procedure.

Please be sure to show all work related to this question. Especially for Part B. I will not rate/give points unless I feel that this has been done.


Related Discussions:- How to formulate a linear programming model

Explain the probability that rich will go to each store, The hunt is on: Ri...

The hunt is on: Rich's 13 year old daughter Alexandra is going to give him an introductory trombone concert later in the day, and he wants to purchase earplugs before then. Three s

Communication skills, whether writing, listening, speaking, or attending me...

whether writing, listening, speaking, or attending meetings, communication skills are critical to your success in university and work place.

Explain a popular concept in healthcare administration, A popular concept i...

A popular concept in healthcare administration these days is the service line. Let us put you in the CFO position for this question. For your own hospital, are you in favor of serv

Explain programme evaluation and review technique, Explain Programme Evalua...

Explain Programme Evaluation and Review Technique. Programme Evaluation and Review Technique (PERT): It is a technique used for scheduling and controlling the projects whether

Disadvantages, What are the disadvantages of operation management?

What are the disadvantages of operation management?

Describe why agency and your proposed regulation interests, Pick an adminis...

Pick an administrative agency of either the federal or a state government. Find where the current and proposed regulation changes for that agency are located on the Internet. (i.e.

Find annual sales is thousands of bottles, Problem 3-5 A cosmetics manufact...

Problem 3-5 A cosmetics manufacturer's marketing department has developed a linear trend equation that can be used to predict annual sales of its popular Hand & Foot Cream. Ft = 80

Explain benefits and variable pay, Benefits and Variable Pay Please respond...

Benefits and Variable Pay Please respond to the following- • Analyze the types of benefits usually available in the health care industry and determine which benefits are most im

Explain wastewater treatment plant, Visit the site: Wheaton, IL Sanitary Di...

Visit the site: Wheaton, IL Sanitary District. This tour of a wastewater treatment plant is an example of a high-volume, public project. • How is capacity defined at a wastewate

MBA, What do you understand by “line balancing”? What happens if balance do...

What do you understand by “line balancing”? What happens if balance doesn’t exist?n..

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd