Homework 1

Advanced Business Analytics

Ali Fattahi

Part I: Chapter 4, problem 64 and problem 80-part a.

 For both problems, develop algebraic models and spreadsheet models. GAMS model is not required for these
problems.
Part II: Develop a GAMS model for the following extended case of the hot-tubs example.

 Extended Hot-Tubs Example: In addition to Aqua-Spa and Hydro-Lux, Blue Ridge can produce a third type of
hot-tub XYZ that generates unit profit of $340. To produce a unit of XYZ, the following resources are required:
1 pump, 8 hours of labor, and 14 feet of tubing. Develop a GAMS model to find the optimal production
quantities for Aqua-Spa, Hydro-Lux, and XYZ.
Part III: Develop a GAMS model for the following extended case of the investment planning problem (note the
GAMS code for the investment planning problem is available on Blackboard, under “Class Files – Session 1 –
Solutions”).

 Extended Investment Planning Problem: Assume that Barney-Jones decides to use different limits for different
investment options (instead of the previous $75,000 limit that used to be enforced for all options). Specifically,
they want to limit the amount put into investments A, B, C, D, and E to $70,000, $72,000, $72,000, $78,000,
and $73,000, respectively. Develop a GAMS model to find an optimal investment strategy for Barney-Jones.

 Note 1. Please use the attached “Answer Sheet- HW1.xlsx” to prepare your submission. You need to complete
this Excel file and submit it on Blackboard.
 Note 2. In the attached "Answer Sheet – HW1.xlsx" there is a summary sheet where you need to paste your
final results/answers. Your spreadsheet models should be in two separate sheets (in the same file).
 Note 3. Your algebraic models should be placed in the summary sheet of the "Answer Sheet – HW1.xlsx".
 Note 4. Upload the completed GAMS code files on Blackboard along with the "Answer Sheet – HW1.xlsx”.