Write the LP formulations for each problem. 3. An airline executive seeks the co
ID: 408606 • Letter: W
Question
Write the LP formulations for each problem.
3. An airline executive seeks the combination of domestic and foreign flights that will maximize total quarterly profit. Each domestic flight contributes $2500 to profit and a foreign flight contributes $5000 to p rofit. Airline regulations require the company to schedule a total of exactly 1000 flights per quarter. A second regulation requires the number of foreign flights to be no more than ¼ of the number of domestic flights. This airline can staff as many as 10,000 hours per quarter. Past experience indicates that a domestic flight takes 20 staff hours and each foreign flight takes 40 staff hours per quarter.
4. A financial counselor wants to develop an investment portfolio that will maximize a customer’s t otal dollar return. Two types of independent investments are available: stocks, whose average return is 6%, and bonds, which return an average of 4%. The customer has $1000 available and prefers to invest exactly twice as much in bonds as in stocks. As a result of other commitments, the counselor can devote no more than 90 hours to research and placement of the customer’s portfolio. Past experience indicates that stocks require 6 minutes of effort per dollar invested and bonds require 12 minutes.
Explanation / Answer
3)
max Z= x + y
subject to
x+y<10000
x<20
y<1/4
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