FullyCharge company considers four types of investment. Capital available for investment is $14,000. NPV of the following investments: Pilihan Investasi 1 2 3 4 fund $5,000 $7,000 $4,000 $3,000 NPV $16,000 $22,000 $12,000 $8,000     FullyCharge Company considers the following “logical” limits: § Choose only 3 investments § If the 2nd investment is selected, then the 1st investment is selected § If the 1st investment is selected, then the 3rd investment is not selected § One of the 3rd or 4th investment must be selected, but not both From the problems above, formulate a linear programming model and determine its optimal value:

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 52P
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Linear programming has many benefits for everyday life, including solving optimization problems in industry, banking, education, and other problems that can be expressed in linear form. For example, in business the benefits of learning linear programming are determining the minimum value in terms of determining costs while the maximum value in terms of determining profits.

Do the investment problem below on a piece of paper or in Ms.Word. Then uploaded on this forum.

 

FullyCharge company considers four types of investment. Capital available for investment is $14,000. NPV of the following investments:

Pilihan Investasi

1

2

3

4

fund

$5,000

$7,000

$4,000

$3,000

NPV

$16,000

$22,000

$12,000

$8,000

 

 

FullyCharge Company considers the following “logical” limits:

§ Choose only 3 investments

§ If the 2nd investment is selected, then the 1st investment is selected

§ If the 1st investment is selected, then the 3rd investment is not selected

§ One of the 3rd or 4th investment must be selected, but not both

From the problems above, formulate a linear programming model and determine its optimal value:

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