If the coefficient for Activity 2 in the objective function changes to $400, then the objective function value: A) will increase by $100. B) will increase by $7,500. will remain the same. D) will increase by $2,750. OC)

Bob and Dora Sweet wish to start investing $1,000 each month. The Sweets are looking at five investment plans and wish to maximize their expected return each month. Assume interest rates remain fixed and once their investment plan is selected they do not change their mind. The investment plans offered are: Fidelity 9.1% return per year Optima 16.1% return per year CaseWay 7.3% return per year Safeway 5.6% return per year National 12.3% return per year Since Optima and National are riskier, the Sweets want a limit of 30% per month of their total investments placed in these two investments. Since Safeway and Fidelity are low risk, they want at least 40% of their investment total placed in these investments.Formulate the LP model for this problem, using the standard LP format. Remember to define the objective function, the decision variables, and label the constraint functions. There is no need to solve the problem. Note:- Do not provide handwritten solution. Maintain…

14. Given the following sequential decision tree, determine which is the optimal investment, A or B: 55 .40 $300,000 (-$20,000) 7 .30 .60 $60,000 $45,000 Investment A .70 $75,000 20 $200,000 (-$70,000) (-$17,000) .80 $70,000 1 $60,000 .15 .35 $105,000 (-$9,000) .55 6 .65 $40,000 Investment B (-$50,000) 3 $55,000 .30 $80,000

Assume that the Wisconsin Cheese Factory currently operates a large facility in Madison, WI. The owner, however, is concerned about concentration of risk and has decided to open up two new facilities to lessen that concentration, one in St. Cloud, MN, and the other in Iowa City, IA. Total production, while slightly less profitable overall because of additional operational costs, remains the same, with 1/3 at each location. This action is an example of _______. profit maximization loss reduction loss prevention risk avoidance

Three different objectives relate to a firm's profit, which is often measured in terms of return on investment. One objective, known as when a firm sets a OCcurs profit goal, usually determined by its board of directors. Select one: O a. managing for long-run profits O b. minimizing risk Oc. target return O d. break-even strategy O e. maximizing current profit

1 A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 25x, + 15x2 +25x3+ 15x4 s.t 5x1 + 11x2 + 4x3 + 5x4 $ 11 {Constraint 1) x1 + x2 + x3 + X4 2 2 {Constraint 2) X1+x2 s 1 {Constraint 3) X1 +x3 2 1{Constraint 4) x2 = X4 {Constraint 5) 1, if location jis selected 0, otherwise Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? Location 1 will Location 2 will Location 3 will Location 4 will

operations management

An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $15,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,600. Variable cost would increase to $0.65 and the selling price would be revised to $1.30 with the expectation that the volume would be 50,000 units as a result of a​ higher-quality product. If the firm does not add new​ equipment, its profit will be​ =_____ dollars ​(round your response to the nearest whole number and include a minus sign if the profit is​ negative).