1 / 4

Assignment 1

drago
Télécharger la présentation

Assignment 1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Assignment 1

    2. Problem Formulation x1 = number of special risk insurances to be sold x2 = number of mortgages to be sold Obj: Max(5x1 + 2x2) s.t.: 3x1 + 2x2 <= 2400 (Underwriting dept.) x2 <= 800 (Admin) 2x1 <= 1200 (Claims) x1, x2 >= 0 (Non-negativity)

    3. Graph

    4. Intersecting Line Method The two lines that meet at the optimal point are: 3x1 + 2x2 = 2400 2x1 = 1200 The equations are known as binding constraints. Solving for x1 and x2 in the two equations: x1 = 600; x2 = 300 Therefore, objective function value (z) = 5x1 + 2x2 = 5(600) + 2(300) = $3600

More Related