TGMT 7060 HW4 QUESTION 1 SGC Investment Services must develop an investment portfolio for a new client. As an initial investment strategy, the new client would like to restrict the portfolio to a mix of two stocks. Stock Price/ Share ($) Est Annual Return (%) AGA Products 5 0 6 Key Oil 100 10 The client wants to invest $50,000 and established the following tow investment goals: Priority Level I Goal Goal 1: Obtain an annual return of at least 9% Priority Level 2 Goal Goal 2: Limit investment in Key Oil, the riskier investment, to no more than 60% of the total investment. a) Formulate a goal programming model for the SGC Investment problem, b) What is the investment mix? El QUESTION 2 Industrial Chemical produces two adhesives used in the manufacturing for airplanes. The two adhesives, which have different bonding strengths, require different amounts of production time: the lC-100 adhesive requires 20 minutes of production time per gallon of nished product, and the IC200 adhesives requires 30 minutes of production time per gallon. Both products use 1 pound of highly perishable resin for each gallon of the nished product. Inventory currently holds 300 pounds of resin, and more can be obtained if necessary. However, because of the limited shelf life of the material, any amount not used in the next two weeks will be discarded. The rm has existing orders for 100 gallons of IC-lOO and 120 gallons of IC-ZOO. Under normal conditions, the production process operates eight hours per day, ve days per week. Management wants to schedule production for the next two weeks to achieve the following goals: Priority Level 1' Goals Goal 1: Avoid underutilization of the production process Goal 2: Avoid overtime more than 20 hours for the two weeks. Priority Level 2 Goals Goal 3: Satisfy existing orders for IC-lOD adhesive; that is, produce 100 gallons of IC-lOO Goal 4: Satisfy existing orders for IC-ZOO adhesive; that is, produce 120 gallons of IC200 Priority Level 3 Goals Goal 5: Use all the resin Formulate AND solve a goal programming model for Industrial Chemicals