9. Linear programming models are used by many Wall Street firms to select a desirable bond portfolio. The following is a simplified version of such model. Solodrex is considering investing in four bonds: $1,000,000 is available for investment. The expected annual return, the worst-case annual return on each bond, and the duration of each bond are given in Table 15. The duration of a bond is measure of the bond’s sensitivity to interest rates. Solodex wants to maximize the expected return from its bond investments, subject to three constraints. Constraint 1. The worst-case return of the bond portfolio must be at least 8%. Constraint 2. The average duration of the portfolio must be at most 6. For example, a portfolio that invested $ 600,000 in bond 1 and $400,000 in bond 4 would have an average duration of {(600,000) (3) + (400,000) (9)]}/ 1,000,000 = 5.4. Constraint 3. Because of the diversification requirements, at most 40% of the total amount invested can be invested in a single bond. Formulate an LP model to help Solodex tom achieve its objective. Table. 15

11. Eli Daisy produces the drug Rozac from four chemicals. Today they must produce 1,000 lb of drug. The three active ingredients in Rozac are A, B, and C. By weight, at least 8% of Rozac must consist of A, at least 4% of B, and at least 2% of C. The cost per pound of each chemical and the amount of each ingredient in1 lb of each chemical are given in table below. It is necessary that at least 100 lb of chemical 2 be used. Formulate an LP whose solution would determine the cheapest way of producing today’s batch of Rozac. Chemical| Cost per lb| A| B| C|

...ORIGINS OF OPERATIONS MANAGEMENT AND OPERATIONS RESEARCH
comparison of the origins of operations management and operations research reveals that both are an innovation of the 20th century. The origin of operations research was in England, circa 1937, and has its roots in scientific management, with its first significant applications to military operations in both World War I and World War II....

...Homework Assignment 2 Solution
Question 1: (True / False) (20 Points)
Answer this question in a table with the question number and the selected answer (True or False) in separate columns as shown below.
Question Number
Answer
1
2
…
10
Grading
2 points each
1- The feasible solution space only contains points that satisfy all constraints.
2- Graphical solution to linear programming problems can handle problems that involve any number of decision variables.
3-...

...OPERATIONS RESEARCH
INTRODUCTION
Operations Research is a unique discipline, one of its kinds, best of breeds, employing several highly developed and advanced analytical techniques which in turn aids in effective decision making. It is often regarded as a sub-field of mathematics. Operations research (OR) are not only deeply involved with making and taking effective decisions. It is also concerned with minimizing losses, optimization,...

...Operation research
Operational Research (OR) is the use of advanced analytical techniques to improve decision making. It is sometimes known as Operations Research, Management Science or Industrial Engineering. People with skills in OR hold jobs in decision support, business analytics, marketing analysis and logistics planning – as well as jobs with OR in the title.
Examples of OR
* Scheduling: of aircrews and the fleet for airlines, of vehicles in supply...

...DEPARTMENT OF APPLIED MATHEMATICS BSc Honours in Operations Research and Applied Statistics SMO 1101 Introduction to Operations Research TUTORIAL QUESTIONS
1. List and discuss the six major steps in the quantitative modeling process. 2. What is the difference between a i. descriptive and a normative model? ii. discrete and a continuous variable? 3. Show that the set ℜ n is a convex set. 4. Is the linearity assumption, in LP models, realistic in applications? 5....

...Assignment on Operations Research Transportation Model
INTRODUCTION
Many practical problems in operations research can be broadly formulated as linear programming problems, for which the simplex this is a general method and cannot be used for specific types of problems like,
(i)transportation models,
(ii)transshipment models and
(iii) the assignment models.
The above models are...

...CHAPTER 1: INTRODUCTION TO OPERATIONS RESEARCH (OR)
1.1 INTRODUCTION
Operation Research, an approach to decision making based on the scientific method, makes extensive use of quantitative approaches to decision making. In addition to operation research, two other widely known and accepted names are management sciences and decision science interchangeably.
The scientific management revolution of the early 1900s, initiated by Frederic W. Taylor,...

...MBA SEMESTER II MB0048 –Operation Research- 4 Credits (Book ID: B1137) Assignment Set- 1 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions
1. a. Explain how and why Operation Research methods have been valuable in aiding executive decisions. [5 Marks] b. Discuss the usefulness of Operation Research in decision making process and the role of computers in this field. [5 Marks]
2. Explain how the linear programming technique...