# Question: A corporation has two divisions the Eastern Division and the

A corporation has two divisions (the Eastern Division and the Western Division) that operate semiautonomously, with each developing and marketing its own products. However, to coordinate their product lines and to promote efficiency, the divisions compete at the corporate level for investment funds for new product development projects. In particular, each division submits its proposals to corporate headquarters in September for new major projects to be undertaken the following year, and available funds are then allocated in such a way as to maximize the estimated total net discounted profits that will eventually result from the projects.

For the upcoming year, each division is proposing three new major projects. Each project can be undertaken at any level, where the estimated net discounted profit would be proportional to the level. The relevant data on the projects are summarized as follows:

A total of $150,000,000 is budgeted for investment in these projects.

(a) Formulate this problem as a multidivisional linear programming problem.

(b) Construct the corresponding table of constraint coefficients having the block angular structure shown in Table 23.4.

For the upcoming year, each division is proposing three new major projects. Each project can be undertaken at any level, where the estimated net discounted profit would be proportional to the level. The relevant data on the projects are summarized as follows:

A total of $150,000,000 is budgeted for investment in these projects.

(a) Formulate this problem as a multidivisional linear programming problem.

(b) Construct the corresponding table of constraint coefficients having the block angular structure shown in Table 23.4.

## Answer to relevant Questions

Use the decomposition principle to solve the Wyndor Glass Co. problem presented in Sec. 3.1. The demand D for a product in a week is a random variable taking on the values of –1, 0, 1 with probabilities 1/8, 5/8, and C/8, respectively. A demand of – 1 implies that an item is returned. (a) Find C, E(D), and ...Two machines produce a certain item. The capacity per day of machine 1 is 1 unit and that of machine 2 is 2 units. Let (X1, X2) be the discrete random variable that measures the actual production on each machine per day. ...Let X be a random variable with density (a) What value of K will make fX(y) a true density? (b) What is the CDF of X? (c) Find E(2X – 1). (d) Find variance (X). (e) Find the approximate value of P{X–bar > 0}, where X is ...For Prob. 25.5-4, show that the time to failure distribution is IFRA.Post your question