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

Find revenue from its recently won government contract, Buckeye Manufacturi...

Buckeye Manufacturing expects to generate additional revenue from its recently won government contract. Buckeye forecasts that the revenue will be $40 million in the first year, bu

The soccer world cup is promoted, The Soccer World Cup is promoted aggressi...

The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) a. Event b. Idea c. Service d. Plac

Line balancing, what is line balancing and what happens if it doesn''t exis...

what is line balancing and what happens if it doesn''t exist?

What are the benefits of the total productive maintenance, What are the ben...

What are the benefits of the total productive maintenance? Benefits of Total productive maintenance (TPM): • Less equipment downtime and main stoppages in production providi

Explain benefit from integreated software, How can a university, which is a...

How can a university, which is also a service organizaiton, benefit from integreated software?

What are some merits of a pay-for-knowledge pay system, What are some advan...

What are some advantages of a pay-for-knowledge pay system?

Supplier relationships in a supply network, Supplier relationships in a sup...

Supplier relationships in a supply network are categorised in which ways:- Single, multiple, delegated and parallel

Transportation and assignment problem, Transportation and Assignment Proble...

Transportation and Assignment Problem: Transportation  problem is the  problem of determining the minimum  cost for  allocating a product from  several supply sources to sever

Draw a network for the project, Question: (a) "CPM and PERT are two tec...

Question: (a) "CPM and PERT are two techniques widely used in project management." Under what conditions is each one of them used ? Illustrate your answer with examples. (b

Explain effectiveness change as an organization grows, The __________ _____...

The __________ ____________ ___________ approach to success suggests that measures of effectiveness change as an organization grows. Answer

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