Question

In: Operations Management

8. Pro wants to buy two thousand units of share P and share Q in total...

8. Pro wants to buy two thousand units of share P and share Q in total while keeping the cost to the minimum. Each share P costs $30 and each share Q costs $80. As per strategy, Pro must buy at least 100 units of each share, and number of Share P must be at least twice the number of Share Q.

****PLEASE SHOW ALL ANSWERS,FORMULAS, STEPS, DONE THROUGH EXCEL ****

Expert Solution

Decision Variable:

Xp = Units of Share P

Xq = Units of Share Q

Objective Function:

Minimize Cost (Z) = 30*Xp + 80*Xq

Constrains:

C1: Xp + Xq = 2000

C2: Xp >= 100

C3: Xq >=100

C4:Xp >=2*Xq

Xp - 2*Xq >=0

Xp, Xq >=0 (integers)

We can solve it using Excel Solver

i) Excel LP formation

ii) Formula Used

iii) Solver Parameters

iv) Solution

keosha answered 1 year ago

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