linear programming question 3. Tonya Manager is interested in expanding her firm and has determined three areas inwhich she might invest additional funds: (1) product research and development, (2) man-ufacturing operations improvements, and (3) advertising and sales promotion. Tonya has$500,000 available for investment in the firm. She can invest in its advertising and salespromotion program every year, and each dollar invested in this manner is expected toyield a return of the amount invested plus 20% yearly. She can invest in manufacturingoperations improvements every 2 years, with an expected return of the investment plus30% (at the end of each 2-year period). An investment in product research and develop-ment would be for a 3-year period, with an expected return of the investment plus 50%(at the end of the 3-year period).To diversify the total initial investment, Tonya wishes to include the requirement that atthe beginning of the first year at least $30,000 must be invested in the advertising andsales promotion program, at least $40,000 in manufacturing operations improvements,and at least $50,000 in product research and development initially. All $500,000 must beinvested at the beginning of the first year. You may assume all returns in year t can bereinvested in year t + 1.(a) Formulate a linear program to determine how much should be invested in each ofthe three alternatives, during each year of a 4-year period, to maximize the totalvalue of the investments at the end of the 4-year period.

Linear programming, often known as linear optimization, is a method for obtaining the best result…

Answered: Tonya Manager is interested in…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 59P

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