Mike has the opportunity to invest $20,000 in treasury bills, Euro bonds, municipal bondsand commercial paper. According to his financial advisor, Mike must invest no more than$10,000 in both the Euro bonds and commercial paper; at least $8,000 in both municipalbonds and treasury bill; and at most $3,000 in commercial paper. Mike's goal is tomaximize his return on investment. The expected yearly returns are summarized in thefollowing table:InvestmentTreasury BillsEuro BondsMunicipal BondsCommercial PaperExpected Return (%)4.56871.Identify the decision variables.2. Identify and formulate the objective function.3. Identify and formulate the constraints.4. Formulate the above investment problem as a Linear Programming Model.

1.Identify the decision variables.2.Identify and formulate the objective function.3.Identify and…

Answered: Mike has the opportunity to invest…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?
Ana is a university student with 12 hours available daily, and she wants to distribute her time betweenstudy (x) and leisure (y) activities. She wants to maximize her total enjoyment while fulfilling heruniversity obligations. Ana considers leisure to be twice (2) as enjoyable as studying, but she alsobelieves that she should spend at least twice (2) as much time studying as she does on leisure activities.Additionally, she cannot spend more than five (5) hours a day on leisure activities to ensure that she hasenough time for her university obligations. 1. How much additional enjoyment would Ana get if she had one more hour per dayavailable, so 13 instead of 12 (dual price)?2. Would Ana experience a greater level of enjoyment if she allows herself to have amaximum of six hours per day to leisure activities instead of five, while still fulfilling her universityobligations within the 12 hours available (dual price)?3. What is the allowable increase of the coefficient accompanying leisure…
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Ms. Cover is the manager of a computer division in the federal government. Among her various responsibilities is the central data entry office, with 10 GS–4 data entry clerks and one GS–5 supervisor. The starting salary range for a GS–4 data entry clerk with limited skills is comparable to the starting salary in private industry. However, after about six months of on-the-job experience, most data entry clerks can get a substantial pay increase by taking a job in private industry. It has become common knowledge in industry that Ms. Cover has a very good training program for data entry clerks and that her division represents a good source of personnel. As a result of this reputation, Ms. Cover has experienced a heavy turnover during the last several months. In fact, the problem has recently become severe enough to create a tremendous work backlog in her division. In short, she has had to oversee so many trainees that the division’s overall productivity has declined. Within the data entry…
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