Please solve both problems and show your work!! Answers are NOT 3010 for second question and 87150 for the third question. Please don't give these answers as the answers!
Question 2 O out of 1 points E.J. Korvair Department Store has $1,000 in available cash. At the beginning of each of the next six months, E.J. will receive revenues and and pay bills as shown in the following table. Month July August September October Revenues (8) Bills ($) 1.000 5,000 2.000 5,000 2.000 6,000 4.000 2.000 7.000 2,000 9,000 1,000 November December It is clear that E.J. will have a short-term cash flow problem until the store receives revenues from the Christmas shopping season. To solve this problem, E.J. must borrow money. At the beginning of July, E.J. may take out a six-month loan. Any money borrowed for a six-month period must be paid back at the end of December along with 9% interest (early payback does not reduce the interest cost of the loan)..J. may also meet cash needs through month-to-month borrowing. Any money borrowed for a one-month period incurs an interest cost of 4% per month. Use linear programming to determine how E.J. can minimize the cost of paying its bills on time. Solve your LP in AMPL and report the optimal cost. Question 3 O out of 1 points You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of month 1, you have 6,000 bushels of wheat. Each month, wheat can be bought and sold at the price per 1,000 bushels given in the following table Month Selling Price ($) 3 Purchasing Month Price ($) 8 8 7 Selling Price ($) 5 5 Purchasing Price ($) 3 6 1 2 6 3 3 7 2 8 1 2 4 1 9 5 3 4 3 2 5 4 10 5 The sequence of events during each month is as follows: 1. You observe your initial stock of wheat. 2. You can sell any amount of wheat up to your initial stock at the current month's selling price. 3. You can buy (at the current month's buying price) as much wheat as you want, subject to the warehouse size limitation. Your goal is to formulate an LP that can be used to determine how to maximize the profit earned over the next 10 months. Solve your model in AMPL. What is the optimal profit? Question 2 O out of 1 points E.J. Korvair Department Store has $1,000 in available cash. At the beginning of each of the next six months, E.J. will receive revenues and and pay bills as shown in the following table. Month July August September October Revenues (8) Bills ($) 1.000 5,000 2.000 5,000 2.000 6,000 4.000 2.000 7.000 2,000 9,000 1,000 November December It is clear that E.J. will have a short-term cash flow problem until the store receives revenues from the Christmas shopping season. To solve this problem, E.J. must borrow money. At the beginning of July, E.J. may take out a six-month loan. Any money borrowed for a six-month period must be paid back at the end of December along with 9% interest (early payback does not reduce the interest cost of the loan)..J. may also meet cash needs through month-to-month borrowing. Any money borrowed for a one-month period incurs an interest cost of 4% per month. Use linear programming to determine how E.J. can minimize the cost of paying its bills on time. Solve your LP in AMPL and report the optimal cost. Question 3 O out of 1 points You own a wheat warehouse with a capacity of 20,000 bushels. At the beginning of month 1, you have 6,000 bushels of wheat. Each month, wheat can be bought and sold at the price per 1,000 bushels given in the following table Month Selling Price ($) 3 Purchasing Month Price ($) 8 8 7 Selling Price ($) 5 5 Purchasing Price ($) 3 6 1 2 6 3 3 7 2 8 1 2 4 1 9 5 3 4 3 2 5 4 10 5 The sequence of events during each month is as follows: 1. You observe your initial stock of wheat. 2. You can sell any amount of wheat up to your initial stock at the current month's selling price. 3. You can buy (at the current month's buying price) as much wheat as you want, subject to the warehouse size limitation. Your goal is to formulate an LP that can be used to determine how to maximize the profit earned over the next 10 months. Solve your model in AMPL. What is the optimal profit
