Concept explainers
To determine: The circumstances under which the constraints are more important than the objective function in the linear programming problem.
Introduction:
Linear programming:
It is a linear optimization technique followed to develop a best outcome for the problem on hand. The outcome might be 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
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?arrow_forwardDescribe what is meant by the assumption of linear programming?arrow_forwardWhat is linear programming?arrow_forward
- When do we put non negativity constraint in Linear Programming?arrow_forwardWhat is the difference between linear programming and non-linear programming? Describe practical examples.arrow_forwardProblem 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_forward
- To what extent may the concept of optimality be used in dynamic programming?arrow_forwardA car company is planning the introduction of a new electric car. There are two options for production. One is to produce the electric car at the company’s existing plant in Illinois, sharing production with its other products that are currently being produced there. If the sales of the electric car are moderate, this will work out well as there is significant capacity to produce all of the products there. However, if sales of the electric car are strong, this option would necessitate Adding a 3rd shift, which would lead to significantly higher costs. Another option is to build a new plant in Ohio. The new plant would have sufficient capacity to meet whatever level of demand for the new car. However, if sales of the new car not strong, the plant would be underutilized and less efficient. Since this is a new product, sales are hard to predict. The forecast indicates there is a 60% chance of strong sales (annual sales of 100,000), and 40% chance of moderate sales (annual sales of…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,