Concept explainers
To determine: The circumstances under which the object function is more important than the constraints in the linear programming problem.
Introduction:
Linear programming:
It is a linear optimization technique followed to develop a best outcome for the problem in hand. The outcome might be of maximum profit or less cost which are represented by a linear relationship. The outcome will take into consideration the constraints present in achieving the solution.
Objective function:
It is a linear function representing a cost, profit or some other quantity. The motive of the objective function is to maximize or minimize a quantity taking the constraints into consideration.
Constraints:
The constraints are the limitation for a situation within which the process must operate. The constraints are the limits within which the available resources can be utilized so as to maximize or minimize a quantity.
Want to see the full answer?
Check out a sample textbook solutionChapter B Solutions
Operations Management
- Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return of 8 percent, Fund B has projected an annual return of 10 percent, and Fund C has projected an annual return of 9 percent. He has decided to invest no more than 30 percent of the total amount in Fund B and no more than 40 percent of the total amount in Fund C. a. Formulate a linear programming model that can be used to determine the amount of investments Michael should allocate to each type of fund to maximize the total annual return.b. How much should be allocated to each type of fund? What is the total annual return?arrow_forwardBugs Bunny and Daffy Duck are contestants on a game show called Split or Steal. On the show, Bugs and Daffy have to pick one of two cards and decide to split the prize money of $100,000 or steal it from the other contestant. The decisions are made simultaneously so neither player knows what the other will do. The table below represents the result of the contestants’ choices. See attached What should a rational player do in this game? Is this a zero-sum game?arrow_forwarda company possesses two manufacturing plants, each of which can produce three products: X,Y, and Z from common raw material. However, the proportions in which the products are produced are different in each plant and so are the plant’s operating costs per hour. Following are the data on the production per hour and costs together with current orders in hand for each product. a company possesses two manufacturing plants, each of which can produce three products: X,Y, and Z from common raw material. However, the proportions in which the products are produced are different in each plant and so are the plant’s operating costs per hour. Following are the data on the production per hour and costs together with current orders in hand for each product. Plant product operating cost per hour(birr) X YZ A 2 4 3 9 B 4 3 2 10 Orders on hand 54 24 60 You are required to use graphical method to find out the number of production hours needed to fulfill the orders on…arrow_forward
- Problem 2: Applications of Linear Programming: Visa Inc. Stock sells for $92 a share and has 3-year average annual return of $20 a share. The beta value is 1.06. JP Morgan Chase and Co. sells for $87 a share and has a 3-year average annual return of $17 a share. The beta value is 1.21. Derek wants to spend no more than $15,000 investing in these two stocks, but he wants to earn at least $2500 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy.arrow_forwardThe linear programming model encompasses a wide variety of specific types of problems.What are they?arrow_forwardWhich of the folowing linear programming model has an unbounded feasible region? = 3x + 2y subject to the following : O max z x+ y34 *< 10 – 4y x20 y20 O None of the above O max z = 3x + 2y subject to the following : x+ 2y <4 x- ys1 x20 y20 O max z = 4x +2y subject to the following : x + 2y 24 3x + y27 -x + 2y s7 x20 y20arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,