Assign Case 2 draft 3

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Assign Case #2
Problem 7-37 (Bhavika Investments)
Bhavika Investments, a group of financial advisors and retirement planners, has been requested to provide advice4 on how to invest $200,000 for one of its clients. The client has stipulated that the money must be put into either a stock fund of a money market fund, and the annual return should be at least $14,000. Other conditions related to risk have also been specified, and the following linear program was developed to help with this investment decision:
Minimize risk
12S + 5M

Subject to

S + M
Total investment is $200,000 0.10S + 0.05M

Return must be at least $14,000 M

At least $40,000 must be in money market fund
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He had not yet developed any technical knowledge about the manufacturing process, but he had toured the entire facility, located in the suburbs of Mexico City, and had met many people in various areas of the operation.
Mexicana, a subsidiary of Westover Wire Works, a Texas firm, is a medium-sized producer of wire windings used in making electrical transformers. José Arroyo, the production control manager, described the windings to Garcia as being of standardized design. Garcia’s tour of the plant, laid out by process type (see figure 7.20), followed the manufacturing sequence for the windings: drawing, extrusion, winding, inspection, and packaging. After inspection good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked.
Wire Drawing


Receiving and
Raw Material Storage





On March 8, Vivian Espania, Mexicana’s general manager, stopped by Garcia’s officer and asked his to attend a staff meeting at 1:00 p.m.
“Let’s get started with the business at hand,” Vivian said, opening the meeting. “You all have met Ron Garcia, our new management trainee. Ron studied operations

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