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

Describe the similarities and differences of medicare, Explain the similari...

Explain the similarities and differences of Medicare and Medicaid managed care plans by comparing and contrasting the following three issues: Strengths, weaknesses and incentives b

Which kind of portable computer will meet everyones needs, Your organizatio...

Your organization plans to acquire 250 new portable computers. The finance vice president has asked you to lead a project team assigned to define users' computer hardware needs and

Product interval time, what is product interval time product duration?

what is product interval time product duration?

How efficient is your system with the cycle time you compute, A firm uses a...

A firm uses a serial assembly system and needs answers to the following- a. A desired output of 900 units per shift (7.5 hours) is desired for a new processing system. The syst

Consider promotions, Complete the following steps for this assignment: 1...

Complete the following steps for this assignment: 1. Select the following link to visit a Web site that is an online demographic tool used to help establish demographics about c

Explain acronym ltpd, Explain acronym LTPD. Ans: The acronym LTPD is...

Explain acronym LTPD. Ans: The acronym LTPD is Lot Tolerance Percent Defective.

Upper bound, Customers arrive at a fast food restaurant with one server at ...

Customers arrive at a fast food restaurant with one server at a mean rate of 30 per hour. The server has just resigned, and the two candidates for the replacement are X (fast but

Explain that they receive the training they need, The Chief Projects Office...

The Chief Projects Officer (CPO) is responsible for the individuals working on a project in all of the following way EXCEPT: A. That they perform project activities according to

Explain what lessons learned other companies, • What lessons learned other ...

• What lessons learned other companies (in vastly different industries) could take away from the innovative practices at Holden. Provide specific examples to support your response.

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance

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