Professional Documents
Culture Documents
Ana Groznik
Homework #1
A total of 12 million EUR is allocated for the loans in the next quarter.
Type of Loan Personal Car Home Farm Commercial Interest Rate 0,140 0,130 0,120 0,125 0,100 Probability of Bad Debt 10% 7% 3% 5% 2%
Bad debts are assumed unrecoverable and produce no interest revenue. At least 40% of all funds must be allocated to farm and commercial loans. Home loans must equal at least 50% of the personal, car and home loans. The overall ratio of bad debts on all loans may not exceed 4%.
Ana Groznik
2/14
Homework #1 - Solutions
Decision variables: x1 = personal loans (in millions) x2 = car loans (in millions) x3 = home loans (in millions) x4 = farm loans (in millions) x5 = commercial loans (in millions) Objective function:
Type of Loan Personal Car Home Farm Commercial Interest Rate 0,140 0,130 0,120 0,125 0,100 Probability of Bad Debt 10% 7% 3% 5% 2%
Constraints:
Ana Groznik
3/14
What should be Maggie's daily dessert plan to maximize the taste enjoyed, and to stay within the diet constraints?
Ana Groznik
4/14
Ana Groznik
5/14
Solver in Excel
Office Button/ Excel Options/ Add-ins/Solver Once Solver is added, it can be activated under Data/ Analysis Mathematical differentiation & derivatives of a function?
Ana Groznik April 28/29, 2011 (Class 2/6) 6/14
Differentiation
Relevant differentiation rules for this course
Ana Groznik
7/14
Ana Groznik
8/14
Practical Example #1
Retailer is buying product for fixed unit price 4 , but he can set any retail price p. However, higher retail price leads to lower demand. Demand can be approximated by D = 100 - p. What is the optimal retail price?
How do we know this calculated p leads to maximizing profit, and not minimizing?
Ana Groznik April 28/29, 2011 (Class 2/6) 9/14
Practical Example #2
You are in charge of organizing a small promotional event for your company. From the budget of 1000 you intend to buy cakes for the attendees. After some testing, you find acceptable two cake options: chocolate cake for 12 unit price, and cheesecake for 10 unit price. Chocolate cake is cut into 16 portions, cheesecake into 12 portions. Obviously, you know which cake option enables you to serve more portions, but you would also like to offer variety. After some deliberation, you decided a good criteria for how many cakes of each type to buy would be a product of individual portions for both cake types. How much money from your budget did you finally spend on one and the other cakes?
Ana Groznik April 28/29, 2011 (Class 2/6) 10/14
Practical Example #2
Would you expect a result like this? How do we know this calculated p leads to maximizing criteria, and not minimizing? Why is the suggested criteria appealing?
Ana Groznik April 28/29, 2011 (Class 2/6) 11/14
Practical Example #3
A charity organization is receiving large quantities of donated food products that must be sorted out properly before are distributed to the families in need. The donated items are laid on a large table, and volunteers standing around the table are taking item by item from the table to put it in the appropriated bin: for example, yogurts into a separate bin, canned soups into another, etc. For the efficiency of the process, it is important that the perimeter of the table (the length of all sides of the rectangle table) is as large as possible, so that many volunteers can work simultaneously. But it is also important that the inner surface of the table is large - and the inner surface is considered 0,5 m away from the edges. However, because of the total weight issues, the table itself (without legs) cannot be heavier than 80kg, and 1m2 weights 5kg. What would be optimal size of the table, if you value the working surface three times more than the perimeter of the table?
Step-by-step solution for this example will be uploaded on the course website.
Ana Groznik April 28/29, 2011 (Class 2/6) 12/14
Challenge problem
In how many different ways it is possible to arrange four students into groups according to the rule 0 < N < 4, where N is the number of group members?
Ana Groznik
13/14
Ana Groznik
14/14