QBUS2310 Assignment 2 S2 2015 achieved 90%

5 Found helpful • 5 Pages • Essays / Projects • Year: Pre-2021

Question 1: You are in charge of loading Cargo ships in Newcastle port. An agricultural commodities dealer wants to transport the following products aboard a ship: You can select to load any and/or all of the available commodities. However, the ship has three cargo holds with the following capacity restrictions: Only one type of commodity can be placed in any cargo hold. However, because of balance considerations, the weight in the forward cargo hold must be within 15% of the weight in the rear cargo hold. In addition, the center cargo hold must be between 40% and 60% of the total weight on board. Formulate an ILP model for the problem and solve it using a spreadsheet. Question 2: You are given the option to invest 1 million dollars in 5 different investments. The returns, risk factors and maturity in years are given in the following table: You would like to maximize the return while minimizing the risk and years to maturity. Higher risk factors mean higher risk. 1. Formulate an MOLP model for this optimization problem. Determine the best outcome for each objective and set appropriate goals. 2. What is the optimal investment strategy if you would like to minimize the sum of percentage deviations from all 3 goals? 3. What is the optimal investment policy if maximizing returns is twice as important as minimizing risk and maturity? Use the minmax function to obtain this policy.

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