The investment to be made by RC Company using linear programming Introduction: Linear programming: It is a linear optimization technique followed to develop the best outcome for the linear programming problem. The outcome might be to maximize profit, minimize cost, or to determine the optimal product mix. The outcome will take the constraints present in achieving the solution into consideration.

Question

Want to see the full answer?

Answer 1

Question

Chapter B, Problem 35P

Summary Introduction

To determine: The investment to be made by RC Company using linear programming

Introduction:

Linear programming:

It is a linear optimization technique followed to develop the best outcome for the linear programming problem. The outcome might be to maximize profit, minimize cost, or to determine the optimal product mix. The outcome will take the constraints present in achieving the solution into consideration.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

An oil company wants to decide how to allocate its budget. The government grants certain tax breaks if the company invests funds in research concerned with energy conservation. However, the government stipulates that at least 35 percent of the funds must be funneled into research for automobile efficiency (methanol fuel research and emission reduction). The company has a budget of $4 million for investment. The research proposal data are shown in the following table. Maximum Investment Annual Return Project Allowed on Investment ______________________________________________________________ Methanol fuel research $900,000 4.5% Emission reduction $485,000 4.0% Solar cells $800,000 4.0% Windmills $650,000 3.8%…

Ford has four automobile plants. Each is capable of producing the Taurus, Lincoln or Escort but it an only produce one of these cars. The fixed cost of operating each plant for a year and the variable cost of producing a car of each type at the plant are in the table. Variable Cost $ Plant Fixed Cost $ Taurus Lincoln Escort 1 7 billion 12,000 16,000 9,000 2 6 billion 15,000 18,000 11,000 3 4 billion 17,000 19,000 12,000 4 2 billion 19,000 22,000 14,000 Ford faces the following restrictions: each plant can produce only one type of car the total production of each type of car must be at a single plant; that is for examply if any Tauruses are made at plant 1, then all Tauruses must be made there if plants 3 and 4 are used then plant 1 must also be used Each year, Ford must produce 500,000 of each type of car. Question: Formulate an IP whose solution will tell Ford how to minimize the annual cost of producing cars.

BP Cola must decide how much money to allocate for new soda and traditional soda advertising over the coming year. The advertising budget is $10,000,000. Because BP wants to push its new sodas, at least one-half of the advertising budget is to be devoted to new soda advertising. However, at least $2,000,000 is to be spent on its traditional sodas. BP estimates that each dollar spent on traditional sodas will translate into 100 cans sold, whereas, because of the harder sell needed for new products, each dollar spent on new sodas will translate into 50 cans sold. To attract new customers, BP has lowered its profit margin on new sodas to 2 cents per can as compared to 4 cents per can for traditional sodas. Let X 1 = amount invested in new soda advertising ; and X 2 = amount invested in traditional soda advertising. The objective function that would maximize profit is: