Boris Milkem’s financial firm owns six assets. Theexpected sales price (in millions of dollars) for each asset isgiven in Table 32. If asset 1 is sold in year 2, the firmreceives $20 million. To maintain a regular cash flow,Milkem must sell at least $20 million of assets during year1, at least $30 million worth during year 2, and at least $35million worth during year 3. Set up an IP that Milkem canuse to determine how to maximize total revenue from assetssold during the next three years. In implementing this model,how could the idea of a rolling planning horizon be used?

Boris Milkem’s financial firm owns six assets. Theexpected sales price (in millions of dollars) for each asset isgiven in Table 32. If asset 1 is sold in year 2, the firmreceives $20 million. To maintain a regular cash flow,Milkem must sell at least $20 million of assets during year1, at least $30 million worth during year 2, and at least $35million worth during year 3. Set up an IP that Milkem canuse to determine how to maximize total revenue from assetssold during the next three years. In implementing this model,how could the idea of a rolling planning horizon be used?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section: Chapter Questions

Problem 64P

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