Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an annual return of $8,000 for each condominium and $6,000 for each acre of land. A condominium unit costs $70,000, and land costs $30,000 per acre. A condominium will cost her $1,000 per unit, an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted for these annual expenses. Lauren wants to know how much to invest in condominiums and land to maximize her annual return. Requirements: a) Define decision variables and tabulated data b) Formulate the Integer Linear Programming Mode
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Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an annual return of $8,000 for each condominium and $6,000 for each acre of land. A condominium unit costs $70,000, and land costs $30,000 per acre. A condominium will cost her $1,000 per unit, an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted for these annual expenses. Lauren wants to know how much to invest in condominiums and land to maximize her annual return.
Requirements:
a) Define decision variables and tabulated data
b) Formulate the Integer Linear Programming Model.
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- The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
- Alice, Wonder, and Land are freshmen under the marketing management program. Every month, they purchase a piece of Panda ballpen. The price of the ball pen is Php9.50.According to a recent survey, 45% of the marketing freshmen have the samepurchasing behavior as Alice, Wonder, and Land. Another 30% also purchase Panda ballpens regularly at the same price; however, they purchase once every 2 weeks. There are approximately 280 freshmen under the marketing management program. Assuming that the behavior is consistent throughout their 4-year stay in the program, what is the approximate projected revenue that can be generated from the marketing freshmen for the entire duration of their stay in the program?A power plant is planning to acquire a new Diesel generating set to replace its resent unit which they run during brownouts. The new set would cost 130,000 with a five (5) year-life, and no estimated salvage value. Variable cost would be 140,000 a year. The present generating set has a book value of 60,000 and a remaining life of 5 years. Its disposal value now is 6,000 but it would be zero after 5 years. Variable operating cost would be 157,500 a year. Money is worth 10%. Which is profitable, to buy the new generator set or retain the resent set? Support your answer by showing your computation. Therefore, [ Select ] [ Select ] the generator will be retained the generator will not be retainedA power plant is planning to acquire a new Diesel generating set to replace its resent unit which they run during brownouts. The new set would cost 130,000 with a five (5) year-life, and no estimated salvage value. Variable cost would be 140,000 a year. The present generating set has a book value of 60,000 and a remaining life of 5 years. Its disposal value now is 6,000 but it would be zero after 5 years. Variable operating cost would be 157,500 a year. Money is worth 10%. Which is profitable, to buy the new generator set or retain the resent set? Support your answer by showing your computation.
- Muscat Distribution Electricity Company (MDEC) is going to perform energy audits on homes that are at least 28 years old. MEDC estimates that homeowner can save 9 RO per square meter annually as the result of energy conservation upgrades that include wall and roof insulation, window glazing, shading, and efficient air conditioning and lightning. 13 years is the expected lifetime of these upgrades, and the annual interest rate is 9%. How much is justified to spend on this project for a 219 square meter built up area home.You drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with $12,000 per-person medical payments coverage and both collision ($500 deductible) and comprehensive coverage. Your neighbor drives a five-year old SUV valued at $10,000. Your neighbor has a 25/50/15 automobile policy with $15,000 in medical payments coverage and both collision ($200 deductible) Early one morning your neighbor was driving down the street while you were driving the opposite way to drop your friend off at her house and your neighbor swerved into your lane and struck your vehicle. Below you will find the damage caused by the accident:Your Bodily Injury: $7,000Your Friend’s Bodily Injury: $25,000Your Car: $8,500Neighbor’s Bodily Injury: $3,000Neighbors Car: $9,000Using the information above, find the following:a) How much will your policy pay for your bodily injury? blank1 - Numeric Answer Please type your answer to submit b) How much will your policy pay for your…Your answer is partially correct. An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $5,200 and it will cost $1,300 per year to operate at the end of year that follows. She will keep the vehicle for 5 years; at the end of this period, the upgraded vehicle will have a salvage value of $3,800. Alternatively, she could trade in her vehicle to lease a new vehicle. She estimates that her current vehicle has a trade-in value of $9,800 and that there will be $4,100 due at lease signing. She further estimates that it will cost $2,900 per year to lease and operate the vehicle. The independent contractor's MARR is 11%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. 1943.56 EUAC(keep): $…
- Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to hurricanes, tornadoes, flooding, and earthquakes, Phillip believes that the probability in any year of a "super-event" that might shut down all suppliers at the same time at least 2 weeks is 2%. Such a total shutdown would cost the company approximately $480,000. He estimates the "unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $14,800 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. Find the EMV for alternatives using 1, 2, or 3 suppliers. EMV(1) = $ whole number.) EMV (2)=$_ EMV(3)=$ (Enter your response rounded to the nearest Based on the EMV value, the best choice to use is... a. one supplier b. two suppliersPhillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to hurricanes, tornadoes, flooding, and earthquakes, Phillip believes that the probability in any year of a "super-event" that might shut down all suppliers at the same time at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $480,000. He estimates the "unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $16,000 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. Find the EMV for alternatives using 1, 2, or 3 suppliers. EMV(1)=$54,40054,400 (Enter your response rounded to the nearest whole number.) EMV(2)= ? $ (Enter your response rounded to the nearest whole number.) EMV(3)= ? $ (Enter your response…Swell Productions is sponsoring an outdoor conclave for owners of collectible and classic Fords. The concession stand in the T-Bird area will sell clothing such as T-shirts and official Thunderbird racing jerseys. Jerseys are purchased from Columbia Products for $40 each and are sold during the event for $75 each. If any jerseys are left over, they can be returned to Columbia for a refund of $30 each. Jersey sales depend on the weather, attendance, and other variables. The following table shows the probability of various sales quantities. How many jerseys should Swell Productions order from Columbia for this one-time event?Sales Quantity Probability Quantity Sales Probability100 0.05 400 0.34200 0.11 500 0.11300 0.34 600 0.05