the optimal solution for the following problem. (Round your answers to 3 decimal places.) Minimize C = 8x + 8y subject to 7x + 9y ≥ 16 10x + 10y ≥ 22 and x ≥ 0, y ≥ 0. What is the optimal value of x? What is the optimal value
Q: Explain what is meant by the feasible region and feasible solution of a graphical linear programming…
A: It is a linear optimization approach used to find the optimum solution to the problem at hand. A…
Q: Below tables show the Answer Report and the Sensitivity Report of the optimization Based on these…
A: a) Objective function is: Max 12X1+8X2+10X3+6X4…
Q: Consider the following LP problem developed at •• B.9 Zafar Malik's Carbondale, Illinois, optical…
A: In order to solve the problem graphically, convert inequalities to equality for the constraints.…
Q: Solve using the duality linear programming method of the following problem: Object Function: F =…
A:
Q: Consider the following linear programming problem: Maximize 12X + 10Y Subject to:…
A: Below is the solution:-
Q: A farmer has 5 hectares of land to plant with rice and corn. He needs to decide how many hectares of…
A: THE ANSWER IS AS BELOW:
Q: Solve the following linear programming problem using the graphical method and answer the following…
A: Note: Since you have posted a question with multiple subparts, we will solve the first three…
Q: Consider the following set of constraints (Maixmization problem): 43X+ 86Y>= 29, and 129X+ 43Y >=…
A: Maximization fundamentally indicates trying to maximize/minimize the value of this linear function,…
Q: Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different…
A:
Q: Use the graphical solution procedure to find the optimal solution. b. Assume that the objective…
A:
Q: Minimize Z = -4x1 + x2 Subject to 8x1 + 2x2 =>16 4x1 + 2x2 =0 Identify the feasible solution area…
A:
Q: Answer the following multiple choice question with respect to this 3 variable linear programming…
A: Following is the given information: Maximize: 5X1 + 2X2 + 7X3 Subject to constraints: X1 + 10X2 +…
Q: Set up and solve the following simple linear optimization model: MAX: 23.0 x + 16.9 y subject to: 3x…
A: Given that - MAX: 23.0x + 16.9y Subject to 3x + 4y ≥ 20 4x ≥ 10 5x + 1y ≤ 71 xy ≥ 0
Q: The LP problem is given by, Maximize profit 8X1+ 5X 2 Subject to: X1+X2s 10 X1s6 X1 0 X220 Use…
A: Linear programming is a technique to reach the best outcome like maximum profit or lowest cost whose…
Q: What is Optimization? How many methods are there to calculate it? Explain this?
A: Hello thank you for the question. As per guidelines, we would provide only one answer at a time.…
Q: Min 4x1 + 6x2 s.t 2x1 + 2x2 ≥ 3, x1 + 3x2 ≥ 2, x1 +…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Find the optimal solution for the following problem. (Round your answers to 3 decimal places.)…
A: Here, It is part of Operations Management question, LP problem is as stated below: MAXIMIZE: Z = 14…
Q: a) Use the Simplex Method with Artificial constraints to determine the optimal solution to the…
A:
Q: Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different…
A:
Q: Consider the following linear programming problem: MIN Z = 3x1 + 2x2 Subject to: 2x1 + 3x2 ≥ 12 5x1…
A: The model in MS-Excel (R)
Q: (b) Use the simplex method to solve the following LP problem. Maximize, Z = 3x1 +4x2 Subject to 2x1…
A: A small introduction about the simplex method: The simplex approach uses slack variables,…
Q: Problem 2 Consider the following problem: max 2x1 + 72 + 4x3 s.t. x1 + 2x2 +x3 0. Use the dual of…
A: given,
Q: An operations research analyst for a communications company has the following LP problem and wants…
A: Given, Max Z = 50X1 + 20X2S.T: 2X1 + X2 < 200X1 + X2 < 350Xl + 2X2 < 275
Q: Solve the linear programming problem using the simplex method. Maximize z= 2x, + 3x2 subject to 5x1…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: Consider the following set of constraints: -4X = 1792, and 2X + 2Y <= 256. Pick a right statement…
A:
Q: Consider the following primal LP problem: Maximize X1 + 2X2 – 9X3 + 8X4 – 36X5 Subject to 2X2 – X3 +…
A: Given LP function, Maximize X1 + 2X2 – 9X3 + 8X4 – 36X5Subject to 2X2 – X3 + X4 – 3X5 ≤ 40 X1 – X2 +…
Q: Consider the following set of constraints: 48Y >= 7296; 0.25 X + 12Y >= 1824, and X + Y <= 152. Pick…
A:
Q: Write down the constrained optimization problem as a function of the Objective Function. Then, on a…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Solve the linear programming problem by the simplex method. Maximize 40x+ 30y subject to the…
A: Objective function: Max Z = 40x+30y Constraints: x+y≤8-2x+3y≥15x≥0, y≥0
Q: For this problem clearly derive the Linear program -Graph this problem and clearly indicate the…
A: There is some issue with the pounds available of limestone. 1000 can not be the number if rough…
Q: Consider the following LP problem developed at Zafar Malik's Carbondale, Illinois, optical scanning…
A: Given data is Objective function: Max Z=X1+X2 Subject to constraints: 1.) 2X1+1X2≤602.)…
Q: X1: dollars invested in savings certificatėš X2: dollars invested in municipal bonds X3: dollars…
A: The answer is as below:
Q: Simplify the following problem minimize 35x, + 7x2 + 10x3 + 3x, + x5 subject to x1 - 3x2 + x3 + x, -…
A: Given Information: Minimize Z: 35x1 + 7x2 + 10x3 + 3x4 + x5 Subject to constraints: x1 - 3x2 + x3 +…
Q: Solve using the simplex method the following problem: Maximize Z=3X1 + 2X2 subject to: 2X1+ X2 ≤ 18…
A: Problem is Max Z = 3 x1 + 2 x2 subject to 2 x1 + x2…
Q: Find the optimal solution for the following problem. (Round your answers to 3 decimal places.)…
A: Find the Given details below: Objective Function: Max C = 5 x + 11 y…
Q: Construct one example for each of the following types of two-variable linear programs. Feasible…
A: THE ANSWER IS AS BELOW:
Q: A linear programming problem is given as follows: maximize ? = 50x1 + 80x2 + 64x3 + 80x4…
A: Here, we would maximize the objective value, Maximize the Objective function =50x1 + 80x2 + 64x3 +…
Q: Consider the following LP model in standard form, with a row for the objective function Z. a) Put it…
A: Tableau FormThe variables x3, x4 and x5 are having negative coefficients and hence they will get a…
Q: Problem 2 Consider the following problem: max 2r1 + 7r2 + 4.r3 s.t. rį + 2x2 +x3 0. Use the dual of…
A: Given- MAX 2x1 + 7x2 + 4x3Subject to-x1+ 2x2+ x3≤103x1+ 3x2+ 2x3 ≤10x1, x2, x3≥0
Q: A linear programming problem is given as follows: min Z = −4x1 + x2 Subject to 8x1 + 2x2 ≥ 16 4x1 +…
A: To draw constraint 8x1+2x2≥16 ..................................(1) Treat it as 8x1+2x2=16…
Q: Consider the following set of constraints: ху + 2х2 + 2х; + 4x < 40 2x1 X2 + x3 + 2x4 < 8 4x1 — 2х2…
A: The problem is converted to canonical form by adding slack, surplus, and artificial variables as…
Q: Solve these problems using graphical linear programming and answer the questions that follow.…
A: Linear programming is used for finding optimal solution under various constraints with the final…
Q: Solve the linear programming problem. (If there is no solution, enter NO SOLUTION.) Minimize z = x…
A:
Q: They want to maximize profit. Formulate a linear programming model A refinery produces three grades…
A: here, selling and cost price are given. The difference between both I.e. profit will be maximized.
Q: Consider the following linear programming problem: Maximize: 12X + 10Y Subject to: 4X +3Y ≤ 480 2X…
A: Max z = 12x + 10y subject to 4x + 3y≤ 480 2x + 3y ≤360 x,y≥ 0
Q: Use the simplex method to solve the linear programming problem. Maximize z = 900x, + 500x2 + 300x3…
A: Max Z = 900 x1 + 500 x2 + 300 x3 subject to x1 + x2 + x3 ≤ 130 2 x1 + 3 x2…
Q: Use the simplex method to find the optimal solutions of the following LP Problem. Max. Z = 7x1 + 5x2…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Consider an optimization model with several resource constraints. For one such resource, the amount…
A: A spreadsheet comprising the 2-variable product mix pattern is taken up & tried for optimality…
Q: Find the optimal solution for the following problem. Maximize C = 4x + 12y subject to 3x +…
A: Formula:
Find the optimal solution for the following problem. (Round your answers to 3 decimal places.)
Minimize C = | 8x + 8y |
subject to | 7x + 9y ≥ 16 |
10x + 10y ≥ 22 | |
and | x ≥ 0, y ≥ 0. |
- What is the optimal value of x?
- What is the optimal value of y?
- What is the minimum value of the objective function?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors: The fixed cost of developing the Racer is triangularly distributed with parameters 3, 4, and 5, all in billions. Year 1 sales are normally distributed with mean 200,000 and standard deviation 50,000. Year 2 sales are normally distributed with mean equal to actual year 1 sales and standard deviation 50,000. Year 3 sales are normally distributed with mean equal to actual year 2 sales and standard deviation 50,000. The selling price in year 1 is 25,000. The year 2 selling price will be 1.05[year 1 price + 50 (% diff1)] where % diff1 is the number of percentage points by which actual year 1 sales differ from expected year 1 sales. The 1.05 factor accounts for inflation. For example, if the year 1 sales figure is 180,000, which is 10 percentage points below the expected year 1 sales, then the year 2 price will be 1.05[25,000 + 50( 10)] = 25,725. Similarly, the year 3 price will be 1.05[year 2 price + 50(% diff2)] where % diff2 is the percentage by which actual year 2 sales differ from expected year 2 sales. The variable cost in year 1 is triangularly distributed with parameters 10,000, 12,000, and 15,000, and it is assumed to increase by 5% each year. Your goal is to estimate the NPV of the new car during its first three years. Assume that the company is able to produce exactly as many cars as it can sell. Also, assume that cash flows are discounted at 10%. Simulate 1000 trials to estimate the mean and standard deviation of the NPV for the first three years of sales. Also, determine an interval such that you are 95% certain that the NPV of the Racer during its first three years of operation will be within this interval.The eTech Company is a fairly recent entry in the electronic device area. The company competes with Apple. Samsung, and other well-known companies in the manufacturing and sales of personal handheld devices. Although eTech recognizes that it is a niche player and will likely remain so in the foreseeable future, it is trying to increase its current small market share in this huge competitive market. Jim Simons, VP of Production, and Catherine Dolans, VP of Marketing, have been discussing the possible addition of a new product to the companys current (rather limited) product line. The tentative name for this new product is ePlayerX. Jim and Catherine agree that the ePlayerX, which will feature a sleeker design and more memory, is necessary to compete successfully with the big boys, but they are also worried that the ePlayerX could cannibalize sales of their existing productsand that it could even detract from their bottom line. They must eventually decide how much to spend to develop and manufacture the ePlayerX and how aggressively to market it. Depending on these decisions, they must forecast demand for the ePlayerX, as well as sales for their existing products. They also realize that Apple. Samsung, and the other big players are not standing still. These competitors could introduce their own new products, which could have very negative effects on demand for the ePlayerX. The expected timeline for the ePlayerX is that development will take no more than a year to complete and that the product will be introduced in the market a year from now. Jim and Catherine are aware that there are lots of decisions to make and lots of uncertainties involved, but they need to start somewhere. To this end. Jim and Catherine have decided to base their decisions on a planning horizon of four years, including the development year. They realize that the personal handheld device market is very fluid, with updates to existing products occurring almost continuously. However, they believe they can include such considerations into their cost, revenue, and demand estimates, and that a four-year planning horizon makes sense. In addition, they have identified the following problem parameters. (In this first pass, all distinctions are binary: low-end or high-end, small-effect or large-effect, and so on.) In the absence of cannibalization, the sales of existing eTech products are expected to produce year I net revenues of 10 million, and the forecast of the annual increase in net revenues is 2%. The ePIayerX will be developed as either a low-end or a high-end product, with corresponding fixed development costs (1.5 million or 2.5 million), variable manufacturing costs ( 100 or 200). and selling prices (150 or 300). The fixed development cost is incurred now, at the beginning of year I, and the variable cost and selling price are assumed to remain constant throughout the planning horizon. The new product will be marketed either mildly aggressively or very aggressively, with corresponding costs. The costs of a mildly aggressive marketing campaign are 1.5 million in year 1 and 0.5 million annually in years 2 to 4. For a very aggressive campaign, these costs increase to 3.5 million and 1.5 million, respectively. (These marketing costs are not part of the variable cost mentioned in the previous bullet; they are separate.) Depending on whether the ePlayerX is a low-end or high-end produce the level of the ePlayerXs cannibalization rate of existing eTech products will be either low (10%) or high (20%). Each cannibalization rate affects only sales of existing products in years 2 to 4, not year I sales. For example, if the cannibalization rate is 10%, then sales of existing products in each of years 2 to 4 will be 10% below their projected values without cannibalization. A base case forecast of demand for the ePlayerX is that in its first year on the market, year 2, demand will be for 100,000 units, and then demand will increase by 5% annually in years 3 and 4. This base forecast is based on a low-end version of the ePlayerX and mildly aggressive marketing. It will be adjusted for a high-end will product, aggressive marketing, and competitor behavior. The adjustments with no competing product appear in Table 2.3. The adjustments with a competing product appear in Table 2.4. Each adjustment is to demand for the ePlayerX in each of years 2 to 4. For example, if the adjustment is 10%, then demand in each of years 2 to 4 will be 10% lower than it would have been in the base case. Demand and units sold are the samethat is, eTech will produce exactly what its customers demand so that no inventory or backorders will occur. Table 2.3 Demand Adjustments When No Competing Product Is Introduced Table 2.4 Demand Adjustments When a Competing Product Is Introduced Because Jim and Catherine are approaching the day when they will be sharing their plans with other company executives, they have asked you to prepare an Excel spreadsheet model that will answer the many what-if questions they expect to be asked. Specifically, they have asked you to do the following: You should enter all of the given data in an inputs section with clear labeling and appropriate number formatting. If you believe that any explanations are required, you can enter them in text boxes or cell comments. In this section and in the rest of the model, all monetary values (other than the variable cost and the selling price) should be expressed in millions of dollars, and all demands for the ePlayerX should be expressed in thousands of units. You should have a scenario section that contains a 0/1 variable for each of the binary options discussed here. For example, one of these should be 0 if the low-end product is chosen and it should be 1 if the high-end product is chosen. You should have a parameters section that contains the values of the various parameters listed in the case, depending on the values of the 0/1 variables in the previous bullet For example, the fixed development cost will be 1.5 million or 2.5 million depending on whether the 0/1 variable in the previous bullet is 0 or 1, and this can be calculated with a simple IF formula. You can decide how to implement the IF logic for the various parameters. You should have a cash flows section that calculates the annual cash flows for the four-year period. These cash flows include the net revenues from existing products, the marketing costs for ePlayerX, and the net revenues for sales of ePlayerX (To calculate these latter values, it will help to have a row for annual units sold of ePlayerX.) The cash flows should also include depreciation on the fixed development cost, calculated on a straight-line four-year basis (that is. 25% of the cost in each of the four years). Then, these annual revenues/costs should be summed for each year to get net cash flow before taxes, taxes should be calculated using a 32% tax rate, and taxes should be subtracted and depreciation should be added back in to get net cash flows after taxes. (The point is that depreciation is first subtracted, because it is not taxed, but then it is added back in after taxes have been calculated.) You should calculate the company's NPV for the four-year horizon using a discount rate of 10%. You can assume that the fixed development cost is incurred now. so that it is not discounted, and that all other costs and revenues are incurred at the ends of the respective years. You should accompany all of this with a line chart with three series: annual net revenues from existing products; annual marketing costs for ePlayerX; and annual net revenues from sales of ePlayerX. Once all of this is completed. Jim and Catherine will have a powerful tool for presentation purposes. By adjusting the 0/1 scenario variables, their audience will be able to see immediately, both numerically and graphically, the financial consequences of various scenarios.
- Although the normal distribution is a reasonable input distribution in many situations, it does have two potential drawbacks: (1) it allows negative values, even though they may be extremely improbable, and (2) it is a symmetric distribution. Many situations are modelled better with a distribution that allows only positive values and is skewed to the right. Two of these that have been used in many real applications are the gamma and lognormal distributions. @RISK enables you to generate observations from each of these distributions. The @RISK function for the gamma distribution is RISKGAMMA, and it takes two arguments, as in =RISKGAMMA(3,10). The first argument, which must be positive, determines the shape. The smaller it is, the more skewed the distribution is to the right; the larger it is, the more symmetric the distribution is. The second argument determines the scale, in the sense that the product of it and the first argument equals the mean of the distribution. (The mean in this example is 30.) Also, the product of the second argument and the square root of the first argument is the standard deviation of the distribution. (In this example, it is 3(10=17.32.) The @RISK function for the lognormal distribution is RISKLOGNORM. It has two arguments, as in =RISKLOGNORM(40,10). These arguments are the mean and standard deviation of the distribution. Rework Example 10.2 for the following demand distributions. Do the simulated outputs have any different qualitative properties with these skewed distributions than with the triangular distribution used in the example? a. Gamma distribution with parameters 2 and 85 b. Gamma distribution with parameters 5 and 35 c. Lognormal distribution with mean 170 and standard deviation 60You want to take out a 450,000 loan on a 20-year mortgage with end-of-month payments. The annual rate of interest is 3%. Twenty years from now, you will need to make a 50,000 ending balloon payment. Because you expect your income to increase, you want to structure the loan so at the beginning of each year, your monthly payments increase by 2%. a. Determine the amount of each years monthly payment. You should use a lookup table to look up each years monthly payment and to look up the year based on the month (e.g., month 13 is year 2, etc.). b. Suppose payment each month is to be the same, and there is no balloon payment. Show that the monthly payment you can calculate from your spreadsheet matches the value given by the Excel PMT function PMT(0.03/12,240, 450000,0,0).A company manufacturers a product in the United States and sells it in England. The unit cost of manufacturing is 50. The current exchange rate (dollars per pound) is 1.221. The demand function, which indicates how many units the company can sell in England as a function of price (in pounds) is of the power type, with constant 27556759 and exponent 2.4. a. Develop a model for the companys profit (in dollars) as a function of the price it charges (in pounds). Then use a data table to find the profit-maximizing price to the nearest pound. b. If the exchange rate varies from its current value, does the profit-maximizing price increase or decrease? Does the maximum profit increase or decrease?
- Based on Grossman and Hart (1983). A salesperson for Fuller Brush has three options: (1) quit, (2) put forth a low level of effort, or (3) put forth a high level of effort. Suppose for simplicity that each salesperson will sell 0, 5000, or 50,000 worth of brushes. The probability of each sales amount depends on the effort level as described in the file P07_71.xlsx. If a salesperson is paid w dollars, he or she regards this as a benefit of w1/2 units. In addition, low effort costs the salesperson 0 benefit units, whereas high effort costs 50 benefit units. If a salesperson were to quit Fuller and work elsewhere, he or she could earn a benefit of 20 units. Fuller wants all salespeople to put forth a high level of effort. The question is how to minimize the cost of encouraging them to do so. The company cannot observe the level of effort put forth by a salesperson, but it can observe the size of his or her sales. Thus, the wage paid to the salesperson is completely determined by the size of the sale. This means that Fuller must determine w0, the wage paid for sales of 0; w5000, the wage paid for sales of 5000; and w50,000, the wage paid for sales of 50,000. These wages must be set so that the salespeople value the expected benefit from high effort more than quitting and more than low effort. Determine how to minimize the expected cost of ensuring that all salespeople put forth high effort. (This problem is an example of agency theory.)The annual demand for Prizdol, a prescription drug manufactured and marketed by the NuFeel Company, is normally distributed with mean 50,000 and standard deviation 12,000. Assume that demand during each of the next 10 years is an independent random number from this distribution. NuFeel needs to determine how large a Prizdol plant to build to maximize its expected profit over the next 10 years. If the company builds a plant that can produce x units of Prizdol per year, it will cost 16 for each of these x units. NuFeel will produce only the amount demanded each year, and each unit of Prizdol produced will sell for 3.70. Each unit of Prizdol produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. a. Among the capacity levels of 30,000, 35,000, 40,000, 45,000, 50,000, 55,000, and 60,000 units per year, which level maximizes expected profit? Use simulation to answer this question. b. Using the capacity from your answer to part a, NuFeel can be 95% certain that actual profit for the 10-year period will be between what two values?Suppose that GLC earns a 2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLCs cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five yearsduring year 6, year 11, and so on. For simplicity, we assume that Hundo is GLCs only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.
- Suppose you begin year 1 with 5000. At the beginning of each year, you put half of your money under a mattress and invest the other half in Whitewater stock. During each year, there is a 40% chance that the Whitewater stock will double, and there is a 60% chance that you will lose half of your investment. To illustrate, if the stock doubles during the first year, you will have 3750 under the mattress and 3750 invested in Whitewater during year 2. You want to estimate your annual return over a 30-year period. If you end with F dollars, your annual return is (F/5000)1/30 1. For example, if you end with 100,000, your annual return is 201/30 1 = 0.105, or 10.5%. Run 1000 replications of an appropriate simulation. Based on the results, you can be 95% certain that your annual return will be between which two values?Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client's needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs $50 and provides an annual rate of return of 10%; each unit of the money market fund costs $100 and provides an annual rate of return of 4%. The client wants to minimize risk subject to the requirement that the annual income from the investment be at least $60,000. According to Innis' risk measurement system, each unit invested in the stock fund has a risk index of 8, and each unit invested in the money market fund has a risk index of 3. The higher risk index associated with the stock fund simply indicates that it is the riskier investment. Innis's client also specified that at least $300,000 be invested in the money market fund. Refer to the computer solution shown below. Optimal…Long-Life Insurance developed a linear model to determine the amount of term life insurance a family of four should have, based on the head of the household's current age. The equation is: y = 163 -0.45xwherey = Insurance needed ($000)x = Current age of head of household Calculate the amount of term life insurance you would recommend for a family of four if the head of the household is 53 years old. (Round your answer to 2 decimal places.)