Mgmt306

Assignment I

Question 1.

a) Decision Variables:

Let

P= acres used to raise peppers

T= acres used to raise tomatoes

b) Objective function:

Max 30,000P+40,000T

c) Constraint

Total number of acres: P+T≤12

Maximum acres of Pepper can be produced: P≤6

Labor constraint: 1.5 P+3T≤30

Non-negativity: P, T ≥0

Question2.

Decision Variable:

Let

A= Amount of dollars invested in Stock ABC

P= Amount of dollars invested in Stock PQR

X= Amount of dollars invested in Stock XYZ

b) Objective Function

Max 0.04A+0.065P+0.075X

c) Constraints

A≥X

P≥25,000

A,P,X≤ 40,000

A+P+X≤100,000

Non-Nagativity: A,P,X ≥0

Question 3.

a)

Let

X= Tons of the Best Blend Coffee

Y= Tons of the Economy Blend

Objective Function:

Max 150X+120Y

Constraints:

Max usage of grade A: 0.5X+0.2Y≤100

Max usage of grade B: 0.2X+0.5Y≤100

Max usage of grade C: 0.3X+0.3Y≤75

Non-Nagativity: X,Y ≥0

Coffee Country Roasters | | | | | | | |

| | | | | | | | | |

| X | Y | Limits | |

MAX 150X+120Y

0.5X+0.2Y≤100

0.2X+0.5Y≤100

0.3X+0.3Y≤75

X,Y ≥0

|

Usage of Grade A | 0.5 | 0.2 | 100 | | |

Usage of Grade B | 0.2 | 0.5 | 100 | | |

Usage of Grade C | 0.3 | 0.3 | 75 | | |

Profit | 150 | 120 |   | | |

| | | | | |

Tons of coffee | 166.6667 | 83.33333 | | | |

| | | | | |

| LHS | Sign | RHS | | |

Usage of Grade A | 100 | <= | 100 | | |

Usage of Grade B | 75 | <= | 100 | | |

Usage of Grade C | 75 | <= | 75 | | | | | | |

| | | | | | | | | |

Optimal Profit | 35000 | | | | | | | | |

| | | | | | | | | |

Sensitivity Report

Microsoft Excel 12.0 Sensitivity Report | | | | | |

Worksheet: [hmk1 kit cheng.xlsx]Coffee Country Roasters | | | | |

Report Created: 9/4/2013 1:49:24 AM | | | | | |

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Adjustable Cells | | | | | | |

|   |   | Final | Reduced | Objective | Allowable |...