Optimization Modeling Exercises

The problem set contains three problems designed to help students practice their ability to build mathematical programming models. Problem No. 1 is a portfolio problem, where the students asked a portfolio risk (variance) is minimized subject to find a required return, as such it is not linear. Problem # 2 is the aggregate production planning, therefore linear. Problem # 3 involves determining source as a fixed quantity of a menu of providers with different fixed fees per order and … Read more »

The problem set contains three problems designed to help students practice their ability to build mathematical programming models. Problem No. 1 is a portfolio problem, where the students asked a portfolio risk (variance) is minimized subject to find a required return, as such it is not linear. Problem # 2 is the aggregate production planning, therefore linear. Problem # 3 involves determining source as a fixed quantity of a menu of providers with different fixed-line ordering system fees and prices per unit, it is a mixed integer model. All of them are so small that they are (eg Excel default solver) optimized easily with standard math programming software.
This is a Darden case study.
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from
Robert I Carraway
Source: Darden School of Business
3 pages.
Release Date: 03 January 2003. Prod #: UV0432-PDF-ENG
Optimization Modeling exercises HBR case solution