Answer: provided in the explanation segment
Explanation:
step by step process followed according.
The following is assumed as the decision variables:
a = Value of Dollars invested in Municipal Bonds
b = Value of Dollars invested in Thompson Electronic Inc
c = Value of Dollars invested in United Aerospace Corp
d = Value of Dollars invested in Palmer Drugs
e = Value of Dollars invested in Happy Days Nursing Home
Objective or Goal Function:
Maximize M = 5.3 a + 6.8 b + 4.9 c + 8.4 d + 11.8 e
Subjected to the conditions or constraints:
Constraint 1: Amount came from selling land in Ohio
a + b + c + d + e <= 250000
Constraint 2: Municipal bonds must be at least 20% of the total investments, hence
a >= 0.2 (a+b+c+d+e)
Constraint 3: Electronic + Drug + Aero Space must be at least 40 % of the total funds, hence
b + c + d >= 0.4 (a + b + c + d + e)
Constrain 4: e <= 0.5 a
All these decision variables must be non negative. That is:
a >= 0, b >= 0,c >= 0, d >= 0, and e >= 0
Open Excel, Click the Data menu in the main menu bar
click Solver on the top right corner just below the Data Analysis
Enter the above formulae in objective cells
Now, in the set objective box, enter the cell reference of the cell having the formula
It is asking you to set the Target cell , equal to Maxima or Minima
Once the values are formed in to an augmented matrix, can formulate it as a Linear Programming (LP) model
Tabulate those values and follow the North West corner method to climb down like a ladder
Start at the cell c11, check the neighbors c12 and c21 - if you can fit the values satisfying the constraints, fit it there - if not climb down to c22 and repeat the same for the neighbors of the new cell - viz c23 and c32 and then climb down to c33 and repeat the same untill the results is obtaine
