Question: Using the accompanying generic examples of linear optimzation models, identify which of the following are examples of linear optimization models. Type of Model Decision Objective

Using the accompanying generic examples of linear optimzation models, identify which of the following are examples of linear optimization models.

Using the accompanying generic examples of linear

Type of Model

Decision

Objective

Typical Constraints

Produce mix

Quantities of product to produce and sell

Maximize contribution to profit

Resource limitations(for example, production time, labor,material); minimum sales requirements; maximum sales potential

Process selection

Quantities of product to make using alternative processes

Minimize cost

Demand requirements; resource limitations

Blending

Quantity of materials to mix to produce one unit of output

Minimize cost

Specifications on acceptable mixture

Portfolio selection

Proportions to invest in different financial isntruments

Maximize future return or minimize risk exposure

Limit on availablefunds; sector requirements orrestrictions; proportional relationships on investment mix

Transportation

Amount to ship between scources of supply and destinations

Minimize total transportation costs

Limited availability otsources; required demands met at destinations

Multiperiod production planning

quantities of product to prodice in each of several time periods; amount of inventory to hold between periods

Minimize total production and inventory costs

Limited productionrates; material balance equations

Multiperiod financial management

Amounts to invest inshort-term investments

Maximize cash on hand

Cash balanceequations; required cash obligations

Production/marketing

Allocation of advertisingexpenditures; production quantities

Maximize profit

Budget limitation; production limitations; demand requirements

Select all that apply. A. A factory wants to maximize the amount of product made per day, with constraints such as delivery capacity, worker hours, and material storage space. B. A fast food chain wants to minimize payroll, with constraints such as minimum number of cashiers, minimum number of cooks, and hours of operation. C. A housing developer wants to maximize profits on its new developments, with constraints such as the number of units built, the zoning laws for the land used in any new project, and whether to not the developer should start two projects at the same time. D. A teacher wants to maximize one of his student's grades on the final exam, with constraints such as the time that student spent studying, that student's attendance, and that student's grades on the midterm

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