How to formulate a linear programming model, Operation Management

Assignment Help:

George Johnson recently inherited a large sum of money; he wants to use a portion of this money to set up a trust fund for his two children. The trust fund has two investment options: (1) a bond fund and (2) a stock fund. The projected returns over the life of the investments are 6% for the bond fund and 10% for the stock fund. Whatever portion of the inheritance he finally decides to commit to the trust fund, he wants to invest at least 30% of that amount in the bond fund. In addition, he wants to select a mix that will enable him to obtain a total return of at least 7.5%.

a- Formulate a linear programming model that can be used to determine the percentage that should be allocated to each of the possible investment alternatives.

b- Find the optimal solution using the graphical solution procedure.

Please be sure to show all work related to this question. Especially for Part B. I will not rate/give points unless I feel that this has been done.


Related Discussions:- How to formulate a linear programming model

Explain what is a serial entrepreneur, 1. What is a serial entrepreneur? Is...

1. What is a serial entrepreneur? Is this a new phenomenon? 2. What does it take to be a successful serial entrepreneur? 3. Steve Chen, former PayPal engineer who co-founded

Assignment, Hierarchical planning in operations/production management and t...

Hierarchical planning in operations/production management and types of time frames in each hierarchy

Make scope statement for this project that contains examples, You are in ch...

You are in charge of organizing a dinner-dance concert for a local charity. You have reserved a hall that will seat 40 couples and have hired a jazz combo. Develop a  of all the

Explain differentiation and low-cost strategies, Can you think of organizat...

Can you think of organizations that use a differentiation and low-cost strategies? 2. Specifically, what conceptual steps would you take to get from a differentiation or low-cost s

Describe the similarities and differences among, Discuss the similarities a...

Discuss the similarities and differences among the organization, group, and job levels in open systems theory.

Locational break - even analysis, Locational Break - even analysis In ...

Locational Break - even analysis In comparing several  potential location on  an economic  basis,( i., e, tangible factor)  the only  revenues  and costs  that need  to be con

Explain democracy of goods, The concept of the "democracy of goods" means w...

The concept of the "democracy of goods" means what? 1. Fill in the blanks: By Mistake, someone left spaces unfilled in the status report below. a. Please complete the report

Explain what is the status of the internet contract, Beth advertised her 20...

Beth advertised her 2005 Corvette for sale on the Internet. In her advertisement, she falsely stated that the vehicle had only been driven 60,000 miles when in fact it had been dri

Emba, How many stamping machines are required?

How many stamping machines are required?

Explain great discrepancy in service levels, After graduation, you decide t...

After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking through through the store and stockrooms, you fin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd