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

Scope of job design - process design, Scope of Job Design - Process Design ...

Scope of Job Design - Process Design When designing any job, three requirements must be met simultaneously: technical feasibility, economic feasibility and behavioural feasibi

Transformation processes - operation function, Transformation Processes - O...

Transformation Processes - Operation Function Here are examples of transforming processes:  Information processing  Organisations which handle large quantities of data

Electronic executive information systems, Electronic Executive Information ...

Electronic Executive Information Systems (EIS) and Expert Systems (ES) are examples of  Decision based software.

Explain what were the legal issues in the case of lewis, What were the lega...

What were the legal issues in the case of Lewis v. Heartland Inns of America and what did the court decide?

Gravity center of method, hello , we need to news of practical example of c...

hello , we need to news of practical example of company''s gravity of method

Explain what specific actions entrepreneurs can take, Consider the four maj...

Consider the four major reasons for new business failure. Discuss what specific actions entrepreneurs can take to minimize or avoid these causes of failure

Compute forecasted sales, In the table given below the Distribution Manager...

In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what woul

What does acknowledging sources involve, What does acknowledging sources in...

What does acknowledging sources involve? Sources of information and the ideas of others that you use in your assignments, research and class activities may include books, journa

Briefly analyze two opportunities, Thoroughly research and analyze two oppo...

Thoroughly research and analyze two opportunities and two major threats that united airlines is facing

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