Portfolio Selection Problem

Investment Trade credits Corp bonds Gold Platinum Mortgages Const. loans
T B G P M C

Interest earned 7% 10% 19% 12% 8% 14%

Risk score 1.7 1.2 3.7 2.4 2 2.9

Constraints:
1. Total budget is $5 million
2. No more than 25% of total investment in any single investment
3. At least 30% of total investment in precious metals (G, P)
4. At least 45% of total investment in trade credts and corportate bonds (T, B)
5. Average risk score of total investment is 2 or less.
 T B G P M
Trade credits Corp bonds Gold Platinum Mortgages
Dollars Invested 1,250,000.00 1,250,000.00 250,000.00 1,250,000.00 500,000.00
(0) Interest 0.07 0.10 0.19 0.12 0.08
Constraints:
(1) Total funds 1 1 1 1 1
(2T) Max trade credits 1
(2B) Max corp bonds 1
(2G) Max gold 1
(2P) Max platinum 1
(2M) Max mortgages 1
(2C) Max const loans
(5) Risk score 1.7 1.2 3.7 2.4 2.0
(3) Precious metals 1 1
(4) Trade credits & bonds 1 1
 C
Const loans
500,000.00
0.14 520,000.0000

1 5,000,000.00 <= 5,000,000.00

1,250,000.00 <= 1,250,000.00
1,250,000.00 <= 1,250,000.00
250,000.00 <= 1,250,000.00
1,250,000.00 <= 1,250,000.00
500,000.00 <= 1,250,000.00
1 500,000.00 <= 1,250,000.00
2.9 10,000,000.00 <= 10,000,000.00
1,500,000.00 >= 1,500,000.00
2,500,000.00 >= 2,250,000.00
LHS Sign RHS
Portfolio Selection Problem

T B G P M C
Trade credits Corp bonds Gold Platinum Mortgages Const loans
Portion Invested 0.25 0.25 0.05 0.25 0.10 0.10
Interest 0.07 0.10 0.19 0.12 0.08 0.14 0.104
Constraints:
Total funds 1 1 1 1 1 1 1.00 <=
Max trade credits 1 0.25 <=
Max corp bonds 1 0.25 <=
Max gold 1 0.05 <=
Max platinum 1 0.25 <=
Max mortgages 1 0.10 <=
Max const loans 1 0.10 <=
Risk score 1.7 1.2 3.7 2.4 2.0 2.9 2.00 <=
Precious metals 1 1 0.30 >=
Trade credits & bonds 1 1 0.50 >=
LHS Sign
1.00
0.25
0.25
0.25
0.25
0.25
0.25
2.00
0.30
0.45
RHS
Marketing Research Problem

B1 B2 B3 N1 N2 N3

31- <= 30 31-50

<= 30 50 >= 51 and and >= 51
and and and not not and
borde bord borde borde borde not
r er r r r border
Number of per 0.00 ### ### ### 0.00 ###
(0) Interview c $7.50 ### $5.50 $6.90 $7.25 $6.10 $15,166.00
Constraints:
(1) Total perso 1 1 1 1 1 1 2300.00 >= 2300
(2) <= 30 per 1 1 1000.00 >= 1000
(3) 31-50 persons 1 1 600.00 >= 600
(4) border Me 1 1 1 740.00 >= 345
(5) <= 30 and not border 1 1000.00 >= 500
(6) >= 51 and border 1 140.00 <= 140
LHS Sign RHS
Labour Planning Problem

F P9 P10 P11
FT PT PT PT
nurses @9am @10am @11am
Time period Staff requirements Number of nurses 10.0 0.0 2.0 7.0
9am to 10am 10 (0) Cost $210.00 $80.00 $80.00 $80.00
10am to 11am 12 Constraints:
11am to noon 14 (1) 9am-10am needs 1 1
Noon to 1pm 16 (2) 10am-11am needs 1 1 1
1pm to 2pm 18 (3) 11am-Noon needs 0.5 1 1 1
2pm to 3pm 17 (4) Noon-1pm needs 0.5 1 1 1
3pm to 4pm 15 (5) 1pm-2pm needs 1 1 1
4pm to 5pm 10 (6) 2pm-3pm needs 1 1
Total staff-hours 112 (7) 3pm-4pm needs 1
(8) 4pm-5pm needs 1
(9) Max full time 1
(10) Part-time limit 4 4 4
 P12 P1
PT PT
@noon @1pm
5.0 0.0
$80.00 $80.00 $3,220.00

10.0 >= 10
12.0 >= 12
14.0 >= 14
1 19.0 >= 16
1 1 24.0 >= 18
1 1 22.0 >= 17
1 1 15.0 >= 15
1 10.0 >= 10
10.0 <= 12
4 4 56.0 <= 56
LHS Sign RHS
Transportation Problem

MB MT MA WB WT WA CB CT CA UB
No. of trucks 100.0 0.0 0.0 50.0 200.0 50.0 0.0 0.0 300.0 50
(0) Cost $5 $6 $9 $12 $8 $11 $9 $7 $5 $0
Constraints:
(1) Montreal supply (M) 1 1 1
(2) Winnipeg supply (W) 1 1 1
(3) Chicago supply (C) 1 1 1
(4) Dummy supply (U) 1
(5) Boston demand (D) 1 1 1 1
(6) Toronto demand (T) 1 1 1
(7) Atlanta demand (A) 1 1 1
UT UA
0 0
$0 $0 $4,750

100.0 = 100
300.0 = 300
300.0 = 300
1 1 50.0 = 50
200.0 = 200
1 200.0 = 200
1 350.0 = 350
LHS Sign RHS
Product Mix Problem

Products Silk tie Polyester tie Blend 1 tie Blend 2 tie

S P B1 B2
Demands
(ties per month)
Minimum 6,000 10,000 13,000 6,000
Maximum 7,000 14,000 16,000 8,500
Material usage Cost Availability
(yards per tie) ($ per yard) (yards per month)
Silk 0.125 0 0 0 $20 1000
Polyester 0 0.08 0.05 0.03 $6 2000
Cotton 0 0 0.05 0.07 $9 1250
Costs
($ per tie)
Materials 2.5 0.48 0.75 0.81
Labour 0.75 0.75 0.75 0.75
Selling price
($ per tie) $6.70 $3.55 $4.31 $4.81
Profit margin
($ per tie) $3.45 $2.32 $2.81 $3.25
 S P B1 B2
All silk All poly Blend-1 Blend-2
Number of units 7000.0 13625.0 13100.0 8500.0
Selling price $6.70 $3.55 $4.31 $4.81 $192,614.75
Labor cost $0.75 $0.75 $0.75 $0.75 $31,668.75
Material cost $2.50 $0.48 $0.75 $0.81 $40,750.00
Profit $3.45 $2.32 $2.81 $3.25 $120,196
Constraints: Cost/Yd
Yards of silk 0.125 875 <= 1000 $20
Yards of polyester 0.08 0.05 0.03 2000 <= 2000 $6
Yards of cotton 0.05 0.07 1250 <= 1250 $9
Maximum all silk 1 7000 <= 7000
Maximum all poly 1 13625 <= 14000
Maximum blend-1 1 13100 <= 16000
Maximum blend-2 1 8500 <= 8500
Minimum all silk 1 7000 >= 6000
Minimum all poly 1 13625 >= 10000
Minimum blend-1 1 13100 >= 13000
Minimum blend-2 1 8500 >= 6000
LHS Sign RHS
Make versus Buy Problem

Products Silk tie Polyester tie Blend 1 tie Blend 2 tie

make buy make buy make buy make buy

S SO P PO B1 B1O B2 B2O
Demands
(ties per month)
Total 7,000 14,000 16,000 8,500
Material usage
(yards per tie)
Silk 0.125 0 0 0
Polyester 0 0.08 0.05 0.03
Cotton 0 0 0.05 0.07
Costs
($ per tie)
Materials 2.5 0.48 0.75 0.81
Labour 0.75 0.75 0.75 0.75
Outsourcing 4.25 2 2.5 2.2
Selling price
($ per tie) $6.70 $3.55 $4.31 $4.81
Profit margin
($ per tie) $3.45 $2.45 $2.32 $1.55 $2.81 $1.81 $3.25 $2.61
 S P B1 B2
All silk to All poly Blend-1 Blend-2
make to make to make to make
Number of units 7000.0 12589.3 16000.0 6428.6
Selling price $6.70 $3.55 $4.31 $4.81
Labor cost $0.75 $0.75 $0.75 $0.75
Material cost $2.50 $0.48 $0.75 $0.81
Cost Availability Outsourcing cost
($ per yard) (yards per month) Profit $3.45 $2.32 $2.81 $3.25
$20 1000 Constraints:
$6 2000 Yards of silk 0.125
$9 1250 Yards of polyester 0.08 0.05 0.03
Yards of cotton 0.05 0.07
All silk demand 1
All poly demand 1
Blend-1 demand 1
Blend-2 demand 1
 SO PO B1O B2O
All silk All poly Blend-1 Blend-2
to buy to buy to buy to buy
0.0 1410.7 0.0 2071.4
$6.70 $3.55 $4.31 $4.81 $206,445.00
$31,513.39
$40,750.00
$4.25 $2.00 $2.50 $2.20 $7,378.57
$2.45 $1.55 $1.81 $2.61 $126,803.04
Cost/Yd
875.00 <= 1000 $20
2000.00 <= 2000 $6
1250.00 <= 1250 $9
1 7000.00 = 7000
1 14000.00 = 14000
1 16000.00 = 16000
1 8500.00 = 8500
LHS Sign RHS
Media Selection Problem

Media Television Newspaper Radio - 30 sec Radio - 60 sec

T N P A

Audience per ad 5000 8500 2400 2800

Maximum ads per week 12 5 25 20

Cost per ad 800 925 290 380

Total budget 8000

Total radio budjet 1800
 T N P A
TV Newspaper Prime-time Afternoon
spots ads radio spots radio spots
Number of units 2.00 5.00 6.00 0.00
Audience 5000 8500 2400 2800 66900.00
Constraints:
Maximum TV 1 2.00 <= 12
Maximum newspaper 1 5.00 <= 5
Max prime-time radio 1 6.00 <= 25
Max afternoon radio 1 0.00 <= 20
Total budget $800 $925 $290 $380 $7,965.00 <= $8,000
Maximum radio $ $290 $380 $1,740.00 <= $1,800
Minimum radio spots 1 1 6.00 >= 5
LHS Sign RHS
Vehicle Loading Problem

Shipment Value Weight Volume Value

item ($) (pounds) (cubic feet per pound) ($ per pound)
W1 $15,500 5,000 0.125 $3.10 Weight in pounds
W2 $14,500 4,500 0.064 $3.22 Load value
W3 $10,000 3,000 0.144 $3.33 Constraints:
W4 $14,500 3,500 0.448 $4.14 Weight limit
W5 $13,000 4,000 0.048 $3.25 Volume limit
W6 $9,625 3,500 0.018 $2.75 Item 1 limit (pounds)
Item 2 limit (pounds)
Constraints: Item 3 limit (pounds)
1. Total weight capacity of the truck is 15,000 pounds Item 4 limit (pounds)
2. Total volume capacity of the truck is 1,300 cubic feet. Item 5 limit (pounds)
Item 6 limit (pounds)
 W1 W2 W3 W4 W5 W6
Item 1 Item 2 Item 3 Item 4 Item 5 Item 6
3,037.38 4,500.00 3,000.00 0.00 4,000.00 462.62
$3.10 $3.20 $3.45 $4.15 $3.25 $2.75 $48,438.08

1 1 1 1 1 1 15000.00 <= 15000

0.125 0.064 0.144 0.448 0.048 0.018 1300.00 <= 1300
1 3037.38 <= 5000
1 4500.00 <= 4500
1 3000.00 <= 3000
1 0.00 <= 3500
1 4000.00 <= 4000
1 462.62 <= 3500
LHS Sign RHS
Vehicle Loading Problem - expanded

W1 W2 W3 W4 W5 W6 X1 X2 X3
Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 1 Item 2 Item 3
Truck 1 Truck 1 Truck 1 Truck 1 Truck 1 Truck 1 Truck 2 Truck 2 Truck 2
Weight in pounds 4,794.39 4,500.00 0.00 0.00 0.00 705.61 205.61 0.00 3,000.00
Load value $3.10 $3.20 $3.45 $4.15 $3.25 $2.75 $3.10 $3.20 $3.45
Constraints:
Weight limit truck #1 1 1 1 1 1 1
Volume limit truck #1 0.125 0.064 0.144 0.448 0.048 0.018
Weight limit truck #2 1 1 1
Volume limit truck #2 0.125 0.064 0.144
Item 1 limit (pounds) 1 1
Item 2 limit (pounds) 1 1
Item 3 limit (pounds) 1 1
Item 4 limit (pounds) 1
Item 5 limit (pounds) 1
Item 6 limit (pounds) 1
Same weight 1 1 1 1 1 1
 X4 X5 X6
Item 4 Item 5 Item 6
Truck 2 Truck 2 Truck 2
465.12 4,000.00 2,329.28
$4.15 $3.25 $2.75 $63,526.16

10000.00 <= 10000

900.00 <= 900
1 1 1 10000.00 <= 10000
0.448 0.048 0.018 900.00 <= 900
5000.00 <= 5000
4500.00 <= 4500
3000.00 <= 3000
1 465.12 <= 3500
1 4000.00 <= 4000
1 3034.88 <= 3500
10000.00 = 10,000.00
LHS Sign RHS