Mathematical economics textbook


Assignment:

MATHEMATICAL PROGRAMMING PROBLEMS

For each of the following problem:

a) Express the problem in mathematical notation.

b) Write it GAMS notation and run the program to solve the problem.

c) Report the results on a separate paper. Specifically, report:

 i) The optimum levels of the decision variables.

 ii) The value of the objective.

 iii) Interpret the marginal values of the constraints, including the meaning of a zero marginal value.

d) Open your *.LST file, edit out the page breaks, print, and attach after the report page.

1. San Bernardino Social Services agency is trying to design a minimum-cost meal that will be used in feeding the area’s poor. The meal is to consist only of seaweed and tofu but must meet the following nutrient requirements: calories 300 units, protein 250 units, and vitamins 100 units. The nutrient content per ounce of each food is as follows:

                                       Seaweed                        Tofu                 MinimumNutrition Requirement

Calories                          20                                    15                                    300

Protein                             10                                   25                                   250

Vitamins                           10                                    4                                     100

 

Seaweed costs $0.02 per ounce and Tofu costs $0.04 per ounce. Determine the amount of seaweed and tofu that should go into a meal to minimize cost.

2. The production of type A, B, and C transistors requires processing in each of five locations of a firm’s manufacturing facility. The price per unit on these products are $1.07, $0.86, and $0.98, respectively and the costs per unit are $1, $0.80, and $0.90, respectively.

The processing times required in each location (in minutes) and the total minutes available per production period are shown below. Determine the amount of each type of transistor this company should produce to maximize profits.

                                  Time Required in Location (minutes)
                            L1           L2              L3            L4               L5
Transistor

A                          3              1                2             5                 2

B                          1              1                4             3                 5

C                          2              2                1             4                 4

Total time

Available in         3,500     2,000         3,000        5,000        3,000
Locations

3. Coyote Publishing prints its Mathematical Economics textbook in plants in Boston, Atlanta, Denver, Seattle, and San Bernardino. The books are then shipped to distribution centers in Newark, Chicago, Dallas, and Los Angeles. 

Table below gives the information on cost of shipping a book from the production plants to distribution centers, production capacity at each plant, and quantity demanded at each distribution center. Find the lowest cost way of supplying the textbook to each distribution center.

                                                                                  Distribution Center
                                               Newark        Chicago       Dallas      Los Angeles      Production
Plant                                                                                                                        Capacity

 Boston                                       $0.20         $0.30         $0.40              $0.60           40,000

 Atlanta                                        0.35            0.40           0.45              0.50            10,000

 Denver                                         0.30            0.20           0.30             0.40              15,000

 Seattle                                         0.50            0.40            0.30             0.30             15,000

 San-                                               0.70            0.50          0.45              0.20             20,000

 Bernardino

 Demand                                     20,000         40,000       30,000           10,000

4. Marketing department must select a mix of advertising in order to reach a minimum of 1 million adult males, 2 million adult females, 0.5 million senior citizens, and 1.5 children. The cost per unit of advertising is: television $200, radio $15, magazines $90, and newspaper $30. Determine the number of units of each advertisement that will meet the marketing requirements at a minimum cost.

                                                       Number of People Reached per Unit
                                        Television               Radio                Magazine              Newspaper
Target

 Adult Males                         100                       5                      50                                 30

 Adult Females                       300                     20                    160                                 5

 Seniors                                 40                       10                      5                                  25

 Children                              100                       40                     10                                  5

Attachment:- linear_programming_examples_and_solutions_1.zip

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Advanced Statistics: Mathematical economics textbook
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