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**Static Workforce Scheduling**

Example 15.1 Static Workforce Scheduling

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Example 15.2 Blending Models

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Example 15.3 Logistics Model

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**The optimal solution of the model is illustrated graphically**

The optimal solution of the model is illustrated graphically. A minimum cost of $1020 is incurred by using the shipments listed. Except for these six routes listed, no other routes are used.

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Example 15.4 Logistics Model

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**The RedBrand Company produces tomato products at three plants.**

These products can be shipped directly to their two customers or they can first be shipped to the company’s two warehouses and then to the customers.

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The cost of shipping (in thousands of dollars) between each pair of points is given below. A dash indicates that RedBrand cannot ship across that arc.

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**Aggregate Planning Models**

Example 15.5 Aggregate Planning Models

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During the next 4 months the SureStep Shoe Company must meet (on time) the following demands for pairs of shoes: 3000 in month 1; 5000 in month 2; 2000 in month 3; and 1000 in month 4. At the beginning of month 1, 500 pairs of shoes are inventory, and SureStep has 100 workers. Each worker is paid $1500 per month and can work up to 160 hours a month before he or she receive overtime. (This amounts to about $9.38 per hour.) A worker can be forced to work up to 20 hours of overtime per month at an overtime rate of $13 per hour.

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**A Dynamic Financial Model**

Example 15.6 A Dynamic Financial Model

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**Background Information**

A small toy store, Tyco, projects the monthly cash inflows listed below (in thousands of dollars) during the year 2000.

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**Integer Programming Models**

Example 15.7 Integer Programming Models

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**The Tatham Company is considering four investments.**

The cash required for each investment and the net present value (NPV) each investment adds to the firm are given in the table below.

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**Integer Programming Models**

Example 15.9 Integer Programming Models

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Western wants to determine the smallest number of hubs it will need to cover all of these cities, where a city is “covered” if it is within 1000 miles of at least one hub. The table below lists which cities are within 1000 miles of other cities.

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WESTERN.XLS This file provides the setup to develop the model seen below.

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**Portfolio Optimization**

Example 15.11 Portfolio Optimization

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**The investment company RB Flury can invest in three stocks.**

From past data the means and standard deviations of annual returns have been estimated as shown in the table below.

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