The problem set contains three problems designed to help students practice their ability to build models of math programming. Problem number one is the portfolio problem when a student asked him to find a portfolio that minimizes the risk (variance) subject to the required rate of return, as such, it is nonlinear. Problem number two is the aggregate production planning, therefore, is linear. Problem number 3 includes a definition of how the source of a fixed number of menus with different providers charge a fixed order and unit prices, this is a mixed model. All of them are small enough that they can easily be optimized with standard software mathematics (such as the standard Solver Excel).
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by Robert I Carraway Source: Darden School of Business 3 pages. Publication Date: January 3, 2003. Prod. #: UV0432-PDF-ENG