Problem 3A shipping company is planning on purchasing three different types of boats: A, B and C. Therelevant data is summarized in the following table:Cost (million $) per unitSeating capacityExpected profit ($) per unitA6.5• Required seating capacity: at least 660.• At most 8 type C boats may be purchased45150,000B7.875218,000The objective is to minimize the expansion costs under the following restrictions:• Required returns: $1,800,000.60175,000с9.2• At most 12 boats in all.a. Formulate the linear program that represents this problem and solve it. For thepurposes of this exercise you can assume that is possible to buy fractions of aboat, no need to make the variables integer.b. What is the optimal solution (purchase plan)? How many of each container shouldbe purchased, and what should the resultant cost be?c. Suppose that the requirement of at least 660 for seating capacity is reduced to650. Without resolving the problem, can you determine how this would change theoptimal solution? What would be the new cost?

For this question, I will formulate the Linear programming model, and then, I will solve this LP…

Answered: a. Formulate the linear program that…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 10P

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