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Script For Management Science

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20 views3 pages

Script For Management Science

Uploaded by

delapenazacharie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Script for Management Science

Slide 26
So for this slide we have a non linear programming with multiple constraints. And ma discuss
din dito ang dalawang non linear model example problems which are the facility location and
investment portfolio selection.
Slide 27
So ang facility location lang means ito yung process kung saan mag find or established ng
location for a facility na makakatulong sa business mo. It determines best location for a factory
or warehouse to be palced on demand, facility cost and transportation distances.
Slide 28
So ito yung
Slide 29
Sinasabi lang dito sa example na Ang Clayton County Rescue Squad at Ambulance Service, na
nagsisilbi sa five towns which are Abbeville, Benton, Clayton, Dunning, at Eden. So gusto ng
rescue squad na mag tayo pa ng facility and garage to minimize its total annual travel to the
town.
The locations of the five towns in terms of their graphical x, y coordinates, measured in miles
relative to the point and the expected number of annual trips the squad will have to make to
each town are as follows:
Slide 30
The objective of the problem is to determine a set of coordinates (x, y) for the rescue squad
facility that minimizes the total miles travelled to the town.

The Excel solution to this problem is shown in this picture. The coordinates (x, y) for the new
rescue squad facility are in cells C14:C15. The cells E6:E10 is a formulas for the distances
between the rescue squad facility and each of the town. For example, the formula for the
distance between the rescue squad facility and Abbeville in cell E6 is =SQRT((B6(20)–
C14(21.72))^2(C6(20)–C15(14.14))^2). The formula for the total annual distance in cell D18
ginagamit ditto is yung =SUMPRODUCT(E6:E10,D6:D10), which is also shown on the formula bar
at the top of the spreadsheet. In the Solver Parameters window for this problem, D18 is
the target cell that is minimized and the changing cells (i.e., decision variables) are C14:C15.
There are no constraints.
Slide 31
So this is the graphically location of the rescue squad facility.
Slide 32
So for the next example problems ng non linear is the investment portfolio. And siya pala si
Harry Markowitz ang nag developed ng investment portfolio selection noon 1959.
Slide 33
What do you mean by portfolio selection?
Portfolio selection aims to assess a combination of securities from a large quantity of available
alternatives. It aims to maximize the investment returns of investors. Accord- ing to Markowitz
(1952), investors must make a trade-off between return maximization and risk minimization.
Slide 34
The following example and Excel solution will demonstrate how this model is applied.
Slide 35
So sinasabi lang dito sa example na ito na si Jessica Todd has 4 stocks na gusto niya isama sa
investment portfolio niya. And gusto niya mag karoon ng annual return of at least .11
Slide 36
The Excel spreadsheet for Jessica Todd’s portfolio is shown in this picture. The decision
variables representing the proportion of each stock in the portfolio are in cells E6:E9. The
formula for total return, =SUMPRODUCT(B6:B9(Average Return), E6:E9(Investment
Proportion),is in cell B19. The objective is to minimize the total portfolio variance formula,
which is shown on the formula bar at the top of the spreadsheet. This is a complicated formula
and difficult to type in. It has been shortened slightly by doubling the covariance terms in the
last part of the equation to reflect all the different investment pairs that are included in
B14:E17(i.e., 2 times AB, AC, AD, BC, BD, and CD will include BA, CA, DA, CB, DB, and DC). In
other words, all the covariance terms to the right of the diagonal in the matrix B14:E17are
doubled to include the same values to the left of the diagonal.
Slide 37
The Solver Parameters window is shown in this picture. Notice that non negativity
constraints for the variables are included—by clicking on “Options.”
Slide 38
The model solution is shown in this pciture. It indicates that Jessica should invest 36.0% of her
funds in Altacam 27.2%in Bestco 31.5% in Com.com and 5.3% in Delphi This will result in her
desired minimum portfolio annual return of .11 and a variance of .0104.
Slide 39
Next is the Summary (read ppt)
Slide 40
And that’s all thank you for listening to our presentation of Ms Dooma.

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