1) The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $10 per unit on special risk insurance and $20 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows: Department Underwriting Administration Claims Work-Hours per Unit Special Risk Mortgage 2 3 0 2 3 0 Work-Hours Available 2, 400 800 1,500 REQUIREMENTS: a) Formulate the appropriate linear programming model for this problem. b) Develop the standard form of the LP model for simplex application. c) Obtain simplex tableaus for Iteration 0 and Iteration 1. d) Obtain the optimum solution using the Excel Solver.
1) The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $10 per unit on special risk insurance and $20 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows: Department Underwriting Administration Claims Work-Hours per Unit Special Risk Mortgage 2 3 0 2 3 0 Work-Hours Available 2, 400 800 1,500 REQUIREMENTS: a) Formulate the appropriate linear programming model for this problem. b) Develop the standard form of the LP model for simplex application. c) Obtain simplex tableaus for Iteration 0 and Iteration 1. d) Obtain the optimum solution using the Excel Solver.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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DO B C D ONLY
Transcribed Image Text:1) The Primo Insurance Company is introducing two new product lines: special risk
insurance and mortgages. The expected profit is $10 per unit on special risk insurance
and $20 per unit on mortgages. Management wishes to establish sales quotas for the
new product lines to maximize total expected profit. The work requirements are as
follows:
Department
Underwriting
Administration
Claims
Work-Hours per Unit
Special Risk
Mortgage
2
3
0
2
3
0
Work-Hours
Available
2, 400
800
1,500
REQUIREMENTS:
a) Formulate the appropriate linear programming model for this problem.
b) Develop the standard form of the LP model for simplex application.
c) Obtain simplex tableaus for Iteration 0 and Iteration 1.
d) Obtain the optimum solution using the Excel Solver.
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