Formulate for both Problems:
Posted: Fri Jul 01, 2022 9:05 am
Formulate for both Problems:
IP Example IV Transportation Justify Text Suppo WTR supplier is shipping a component part from two plants: St. Louis and Richmond to two assembly locations in Palo Alto and Fargo. Route shipping costs are known and given in the table below. The supplier will ship as many parts as demanded as long as there is capacity at the plants to meet this demand. Demand and capacity are also known. Formulate an LP model for this problem where the goal is to minimize shipping costs while meeting demand. All shipping costs, demand and capacity constraints are for whole parts. Destinations St. Louis Richmond Palo Alto $60 $40 Plant Demand 15 parts Fargo $30 $10 Production Capacity 10 parts 20 parts 5 parts Note: unbalanced transportation model. Σ supply = 10 +20 = 30, Σ demand = 15 + 5 = 20 Since, Σ supply > Σ demand, use "<=" for supply constraints.
IP Example III Portfolio Lauren Moore wants to invest $500,000. She has 3 options: A- condominium (to be rented) which cost $70,000 per unit; B- land (to be leased to a farmer) which cost $30,000 per 10-acres, and C- a large business building (to be managed by a family friend) which cost $325,000. She estimates receiving an annual return of $8,000 for each unit of condominium, $2,000 per 10-acres farm land, and $60,000 in building rent. How much should Lauren invest in each of her three options to maximize her annual return if: (a) Lauren wants no more than 30 units of condominium. (b) The farmer agrees to lease 40-70 acres. (c) Lauren either buys the business building or she doesn't.
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IP Example III Portfolio Lauren Moore wants to invest $500,000. She has 3 options: A- condominium (to be rented) which cost $70,000 per unit; B- land (to be leased to a farmer) which cost $30,000 per 10-acres, and C- a large business building (to be managed by a family friend) which cost $325,000. She estimates receiving an annual return of $8,000 for each unit of condominium, $2,000 per 10-acres farm land, and $60,000 in building rent. How much should Lauren invest in each of her three options to maximize her annual return if: (a) Lauren wants no more than 30 units of condominium. (b) The farmer agrees to lease 40-70 acres. (c) Lauren either buys the business building or she doesn't.