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

OR, Ask Managers, as decision makers can purchase computer software to solv...

Ask Managers, as decision makers can purchase computer software to solve specific Operations Research (OR) formulations and as such it is not important for them to learn the OR tec

Describe specific strategies, What challenges may arise if a U.S. project m...

What challenges may arise if a U.S. project manager moves to a foreign country to manage a project for 5 years? Discuss specific strategies that the U.S. project manager could use

What is espirit de corps, What is Espirit de Corps? The principle of ma...

What is Espirit de Corps? The principle of management which emphasizes the requirement for teamwork among employees is termed as Espirit de Corps.

Identify the business level strategy of walmart corporation, Looking at Wal...

Looking at Walmart Corporation, identify it's Business Level Strategy. Short paper format about 100-300 words or as needed.

How leverage the support the small business, Determine how you would levera...

Determine how you would leverage the support provided by the U.S. Small Business Administration in planning and starting your own business. Provide specific examples to support you

Compute the exact times that each will begin, Two law students, John and Ma...

Two law students, John and Marsha, are planning an all-nighter to prepare for their law boards the following day. Between them they have one set of materials in the following five

Advocacy of a focused factory - operations strategy, 1. Explain the quandar...

1. Explain the quandary experienced by Skinner (1969,1974) and his advocacy of a 'focused factory'. Answer: Skinner argued that the trade-off concept is based on the quandary th

Explain average inventory level, 1. Custom Computers, Inc. assembles custom...

1. Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each and are ordered in quantities of 1500 units. Annual demand is 75

Explain supply management, What is the difference between purchasing and su...

What is the difference between purchasing and supply management? What is the difference between a supply chain orientation and supply chain management?

Explain rent-a-car liable for the injuries to the plaintiff, U.S. v. Farraj...

U.S. v. Farraj contended that he transmitted information, not goods. Do you think that position is correct? Q2) Phillips v. Budget Rent-a-Car Answer the question Is Budget Rent-a-C

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