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Varying v (over values of v preferred to v2) will give you other points on
curve.
In step 1 we obtained one endpoint of the trade-off curve. If we step best value of objective 2 that can be attained, we obtain the other endpoint
off cuwe.
oi
REI,ITlll PROBLI[l/l$
Group A
Five ofa store's major customeN are located as in Figure 55. Determine \ltlere fte store should be located to minimize the sum of the squarcs of the distances that each customer would have to travel to the storc. Can you generalize this result to the case of, customers located at po {s.x1,x2,...,x,?
I 2
Show that/("r)
mirz =
! +!
+ xy
1
A company uses a ruw material to produce two t,?es of products. When processed, each unit of raw material yields 2 t'mits of Foduct I and I unit of product 2. units of product I are produce4 then each unit can be sold for $49 xr, ifxz units of product 2 are produced, then each unit can be sold for $30 2r2. It costs $5 to purchase and process each unit of raw material. Use the Kuhn-Tircker conditions to determine how the company can maximize profits. 'Wolfe's method to determine how Use LINGO or the company can maximize profts. What is the most that the company would be willing to pay for an extra unit of mw material?
If a company charges a price p for a pro{uct an6 $a on advenising, it can sell 10.000 5Vc l0( of the product. If the product costs $ I 0 per unit to n then how can the compaly maximize profits?
Ifrl
11
car,
sells for $150. Iflabor can be purchased at $50 per machine hous can be puchased at $100 per hour, how the company can maximize profits.
With Z labor hours and M machiqe hours. a prodtre Lttl iu?/1 computer disk &ives. Each disl
hq1
a b c
Group B
Irt time ,, a tree can grow to a size F(t), where ]" 0 and F'(D < 0. Assume that for large r,F,(r) is near 0. the tree is cut at time ,, then a revenue F(r) is receivr Assume that revenues are discdunted continuously at a /, so $ I rcceived at time , is equivalent to $e-' received
,2
4 5
Show that/(.t)
lrl is
it
thai
maximizes discountd revenue. Show that the tree should be cut at the time l* satisrying the equation
f '(d)
F(C)
this equation has a unique solutioo. Also show that the answer is a maximum" not a minimum. [Hir,r. Why is it sumcient to choose ,* to maximize h(e-'rF(r)?l
the answer explain Suppose we arc hiring a weather forccaster to predict the probability that next summer will be rainy or surmy. The following suggests a metltod that can be used to ensue that the forecaster is accurate. Suppose that the achral probability ofrain next summer is 4. For simplicity, we assume that the the forccaster summer can only be rainy or sunny.
RI
The
s.t. 0<x<5 (\
Perform two iterations of the method of steepest ascent in an attempt to maximize + xL)e (\+',\ xl f(xu xr) = point (0,1). Begin at the
*trv
tiffifl
> /)
n
Bazz
c'
Ie
7 The cost of producing .x units of a product during a moqth is x2 dollarc. Find the minimum cost method of
producitrg 60 units dudng the next thrce months. Can you generalize this result to the case where the cost ofproducing r units during a month is an increasing convex function?
'13
Berts
Lueq
M*t
in
If
G;
s.t.
FIGURE 55 3456
xyw 2x + 3y
+ 4w:36
p)2 if rhe surnmer the sumrner is sumy' Show ihat the iorecaster will maximize expected profits by announcing that the probability of a rainy summer is q
rheo she receives a
palmint of 1 -
I - p'
if
I-
if D > a -- e, tltel, ab ) 0". Use this result e' > rr'. (,Fl,r,r.- Show that m*$1 ov"r., > a occurs for r = a.]
14
Show that
to show that
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nu^mber
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17
Consider the problem max z = .f(x)
.1.. uves
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l^*_9:i:i&,
a modified version of the probtem. The
s.t. a=x=h
-::eeo.s:,fg) is a convex tuncrion that has de tor all values of.y. Show that = u" oprma ro, Ge l,rri
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va_
:i*[f
for whi ch f
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Zo. __" rnrerpretarion
userut to the company.s accountant.
oftr,
and
L,
rhar mighr be
ffi*ffiffi,'*ffi
$f,tj.rfi Hl###x:I'',jflIiffi :'# ,,iiffi *;T,#iliffi 'dTr;H*,,f;iff:.:",,",J fi can
be sold
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Theory, Algo_
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cambridge, Mass.
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progromming.
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crifs.
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piiainizg
mrng algorithrns:
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