Purchase Solution

Creating a Linear Programming Model

Not what you're looking for?

Ask Custom Question

Paperbank is starting a new credit card business operation during the next three months (Jan, Feb, and March). It must decide how many credit cards to issue each month. Two kinds of cards will be issued: regular and gold. The profit will be $50 per month for gold cards, and $20 per month for regular cards. In each month, 5% of the regular cards and 20% of the gold cards will have late payments.

The size of the bank's operation will increase during the next three months. It's data processing unit will only be able to keep track of 9000 cards in January. This will increase to 11,000 in February to 13,000 in March. The bank does not want to have more than 300 late cards in January, 600 in February, and 900 in March. The company must decide how many credit cards of each kind to issue in each month. It wants to maximize its total profit during the three months.

* Formulate a linear programming model of the problem.
* Describe the optimal solution within the context of the problem.

Purchase this Solution

Solution Summary

The following posting helps formulate a linear programming model and describes the optimal solution within the context of the problem.

Purchase this Solution

Free BrainMass Quizzes
Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

Exponential Expressions

In this quiz, you will have a chance to practice basic terminology of exponential expressions and how to evaluate them.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts