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 why are suppliers hesitant about jit purchasing, briefly explain ve...

briefly explain vendor relations in lean systems- a. Why are they important? b. how are they different from adversarial relations of the past? c. why are suppliers hesitan

Describe what order quantity is optimal, The manager of a car wash received...

The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days

Explain how they demonstrate their leadership characteristic, Provide two e...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristic. What separate these characteristics from management techniques? How effec

Flow process chart - process design, 1. Examine the flow process chart in t...

1. Examine the flow process chart in the figure and try to develop an improved method for the future, taking advantage of the technologies becoming available. Answer: There are

Why sales promotion is resorted, Why Sales Promotion is resorted? Sales...

Why Sales Promotion is resorted? Sales Promotion is resorted to increase the sale volume.

Explain what is the forecast error, The numbers of patient arrivals to the ...

The numbers of patient arrivals to the ER department at a local hospital for the past 5 weeks are: week: 1 , 2 , 3 , 4 , 5 arrivals: 405 ,420 , 400 , 380 , 411 a) Compute a three-w

Explain a corporation is chartered under state laws, A corporation a. is...

A corporation a. is chartered under state laws. b. is chartered under federal laws c. remains in existence only as long as its owners are alive. d. shifts liability of

Concept of trade off in business strategy, Concept of Trade off in Business...

Concept of Trade off in Business Strategy The trade-off concept was first introduced by Skinner (1969,1974) who carried out a large study of successful American manufacturing

Monthly forecast for landing gear assemblies, 1) Rocco wants to prepare the...

1) Rocco wants to prepare the sales forecast for the next 24 months today. His company produces heavy-duty on/off timers used by large Christmas light displays and above ground swi

A Make or Buy Analysis, A Make or Buy Analysis Managers at Wagner Fabrica...

A Make or Buy Analysis Managers at Wagner Fabricating Company are reviewing the economic feasibility of manufacturing a part that it currently purchases from a supplier. Forecas

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