n problem.
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A: Given data is
Q: For the Orlando real estate investment problem, assume the probabilities for the gasoline shortage,…
A: Given data is
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Q: a. Minimin b. Minimax C. Equal likelihood
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A: Given data is
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Formulate and prove a sufficient condition for optimality for an infinite-horizon problem.
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- Determine the optimal solution to the problem using Hungarian Method and compute the total maximum profit. Give the assignment which will best optimize the cost allocation.How do you know when an optimal solution has been reached?A local real estate investor in Kingston is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Real Estate Investor Payoff Table Payoffs are Profits States of Nature (Gasoline Availability) Decision Alternatives Shortage Stable Supply Surplus Motel $–8,000 $15,000 $22,000 Restaurant $2,000 $8,000 $6,000 Theater $6,000 $6,000 $5,000 Which option should the real estate investor choose if he uses the LaPlace criterion? Using…
- Define the term No Feasible Solutions?5. Ann Tyler has come into an inheritance from her grandparents. She is attempting to decide among several investment alternatives. The return after 1 year is primarily dependent on the interest rate during the next year. 51 The rate is currently 7%, and Ann anticipates that it will stay the same or go up or down by at most two points. The various investment alternatives plus their returns ($10,000s), given the interest rate changes, are shown in the following table: Interest Rate Investment 5% 6% 7% 8% 9% Money market fund Stock growth fund 3.1 4 4.3 -3 -2 2.5 4 Bond fund 6. 3 3 Government fund 4 3.6 3.2 3 2.8 Risk fund -4.5 1.2 8.3 14.7 Savings bonds 3 3 3.2 3.4 3.5 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Equal likelihoodSmall City currently has 1,020,000 square feet of office space, of which 765,000 square feet is occupied by 3,000 employees who are mainly involved in professional services such as finance, insurance, and real estate. Small City’s economy has been fairly strong in recent years, but employment growth is expected to be somewhat lower during the next few years, with projections of an increase of just 130 additional employees per year for the next three years. The amount of space per employee is expected to remain the same. However, a new 153,000 square foot office building was started before the recession and its space is expected to become available at the end of the current year (one year from now). No more space is expected to become available after that for quite some time. Required: a. What is the current occupancy rate for office space in Small City? b. How much office space will be absorbed each year for the next three years? c. What will the occupancy rate be at the end of each…
- Sarah has a startup business that makes two distinct bird feeders that she has designed. Sarah is planning on operating a small factory to build the bird feeders. She is looking at two possible locations, A and B. If she chooses location A, the lease on the building will be higher than location B, thus leading to higher fixed costs than what she would have with location B. However, if she makes more than 20,000 units, both locations will likely have to be expanded, both the physical buildings and the manufacturing equipment. Variable costs to produce each unit will vary by location as well as by product. For example, the first design will have variable costs of $10 and $15 in locations A and B respectively, while the second bird feeder design will have variable costs of $20 and $25 respectively depending on location. However, she thinks that variable costs will decrease if she sells more than 5,000 units, as she will receive discounts from her suppliers at that point. She is unsure of…SOLVE USING EXCEL Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.A manufacturing firm plans to expand the current distribution network. The manager of the firm considers whether to extend a long-term contract with the current company who has done business with the firm in the past and whose distribution system reaches 60% of all potential customers. The second option is to sign a one-year contract with a new distribution company. The new company used to reach only 30% of customers, but they claim that they have invested heavily over the past year in distribution resources and now expect to be able to reach 80% of customers. The manager is not that sure about the new company’s claim and give them about 50% of trust. If the new distributor still covers only 30% in year 1, however, the company can switch back to the familiar old distributor. The manager of the firm wants to develop two-scenario plans: 3-year and 10-year planning horizon. Which distributor should the manager choose for each plan? Show your analysis.
- Three refineries send gasoline to two distribution terminals through a pipeline network. Any demand that cannot be satisfied through the network is met from other sources. The pipeline network is served by three pumping stations as shown below. The capacity of each pipe segment (in million barrels per day) is shown on the arcs. Determine the optimal daily demand at each terminal that matches the maximum capacity of the network. Show your step-by-step solution and provide an organized summary at the end.Problem #4 A through GPlease do not give solution in image format thanku