OPERATIONS MANAGEMENT CONNECT AC
14th Edition
ISBN: 9781264592784
Author: Stevenson
Publisher: MCG
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Textbook Question
Chapter 19, Problem 1DRQ
For which decision environment is linear programming most suited?
Expert Solution & Answer
Summary Introduction
To determine: The environment for which linear programming is most suited.
Linear programming:
Linear programming is a mathematical modeling method where a linear function is maximized or minimized taking the various constraints present in the problem into consideration. It is useful in making quantitative decisions in business planning.
Explanation of Solution
Environment for which linear programming is most suited:
Linear programming is most suitable in situations where there is a single objective. Linear programming can only solve one objective at a time; either maximizing the gains or minimizing the expenses. It will be suitable when there are specific constraints and many variables.
The constraints will be governing the variables. The numerical values, conditions and other requirements will be fixed in a linear programming model. Hence, linear programming is most suitable in similar environments.
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Eastborne Realty has $2 million available for the purchase of new rental property. After an initial screening, Eastborne reduced the investment alternatives to townhouses and apartment buildings. Each townhouse can be purchased for $282,000, and five are available. Each apartment building can be purchased for $400,000, and the developer will construct as many buildings as Eastborne wants to purchase.
Eastborne’s property manager can devote up to 140 hours per month to these new properties; each townhouse is expected to require 4 hours per month, and each apartment building is expected to require 40 hours per month. The annual cash flow, after deducting mortgage payments and operating expenses, is estimated to be $10,000 per townhouse and $15,000 per apartment building. Eastborne’s owner would like to determine the number of townhouses and the number of apartment buildings to purchase to maximize annual cash flow.
Chapter 19 Solutions
OPERATIONS MANAGEMENT CONNECT AC
Ch. 19 - For which decision environment is linear...Ch. 19 - What is meant by the term feasible solution space?...Ch. 19 - Explain the term redundant constraint.Ch. 19 - Prob. 4DRQCh. 19 - Prob. 5DRQCh. 19 - Prob. 6DRQCh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - A small candy shop is preparing for the holiday...
Ch. 19 - A retired couple supplement their income by making...Ch. 19 - Solve each of these problems by computer and...Ch. 19 - Prob. 7PCh. 19 - For Problem 6b: a. Find the range of feasibility...Ch. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Prob. 11PCh. 19 - The manager of the deli section of a grocery...Ch. 19 - Prob. 13PCh. 19 - A chocolate maker has contracted to operate a...Ch. 19 - Prob. 15PCh. 19 - Prob. 16PCh. 19 - Prob. 1.1CQCh. 19 - Prob. 1.2CQCh. 19 - Prob. 1.3CQCh. 19 - Prob. 2.1CQCh. 19 - Prob. 2.2CQCh. 19 - Prob. 2.3CQCh. 19 - Prob. 2.4CQ
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