School

Simon Fraser UniversityDepartment

Business AdministrationCourse Code

BUS 336Professor

Michael JohnsonThis

**preview**shows half of the first page. to view the full**1 pages of the document.**LP Problem Set #2 (for assignment and final exam preparation ONLY – not to be

handed in)

Chapter 3 – starting on page 117 (starts on page 114 in 5th edition):

Question 13: parts a through c ONLY (this is question 12 in 5th edition).

For this question Formulate into Proper LP Format AND solve using ISOPROFIT (levels)

lines first. After you have solved it graphically, formulate the problem using Excel and use

solver to verify your graphical solution is correct.

Question 17. (this is question 14 in 5th edition).

Also include the following two constraints as part of your LP formulation:

i) Management decides that next week’s production must have at least twice as many of

the “Roasted” product category as the “Crunch” product category.

ii) Management also has decided that the “Whole” product category will be at least 50% of

next week’s total production.

Properly Formulate the LP problem. Then use Solver to determine the optimal solution.

For the following questions Formulate into Proper LP Format ONLY (you are not

being asked to solve it): Questions 20 and 32. (these are #17 and #29 respectively in the 5th

edition).

For question 20, when it says “the bank wants to ensure that more money is invested in

mortgages than personal loans” ….. take this to mean that the bank will not invest more money

in Personal loans than in mortgages. Likewise, when it states “it also wants to invest more in

bonds than personal loans” …. Take this to mean that the bank will not invest more money in

Personal loans than in bonds.

Solutions posted in WebCT later this week.

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