Constraint related to total investment

Assignment Help Operation Management

Reference no: EM131660769

A credit union wants to make investments in the following:

Type of Investment Annuel Rate of Return (%)

Vehicle loans 7%

Consumer loans 9%

Other secured loans 10%

Signature loans 11%

Risk-free securities 8%

The firm would like to invest the entire $1,000,000 available for investment during the coming year. The goal is to maximize the return. The following restrictions apply. Write an appropriate constraint or expression for each of the following statements:

1. Write the objective function.

2. Constraint related to total investment

3. Risk-free securities may not exceed 40% of the total funds.

4. Signature loans may not exceed 10% of the funds invested in all loans (vehicle, consumer, other secured loans, and signature loans).

5. Consumer loans plus other secured loans may not exceed the vehicle loans.

6. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

Reference no: EM131660769

Questions Cloud

Describe the different identification methods : Describe the different identification methods that organizations can use to identify their employees and to grant access to the organizational infrastructure.

Purchasing the equipment from productivity viewpoint : GIven that Bob expects that he will be able to sell all the bagles he produces, should he consider purchasing the equipment from a productivity viewpoint?

Discuss the separate corporate identities of adg and adp : Given that ADG had not signed the lease and was not rightfully a sublessee, could ADG be held liable, at least in part, for the damage to the premises?

Operating vs. financial leverage : Describe the difference between operating leverage and financial leverage? How does management calculate the breakeven of a project, in words?

Constraint related to total investment : Write the objective function. Constraint related to total investment. Consumer loans plus other secured loans may not exceed the vehicle loans.

Typical equity section of the firm balance sheet : A typical equity section of the firm's balance sheet consists of three sections which are common stock outstanding

Examine legal requirements for managing patient information : Examine legal requirements for managing patient information, health information documentation, the release of information, and electronic health records.

Describes for saudi arabian organizations : Analyzes the outcomes AlShathry describes for Saudi Arabian organizations and how productivity is impacted - Current sources are those published

Describe and discuss the performance of senior management : Describe and discuss the performance of senior management and other employees in your organisation

User Account

All Pages