INVESTMENT STRATEGY

What is the purpose of this report? What problem is being addressed?
• Presentation of data. Since this comes from the textbook, data does not need to be collected. But what is the factual information given in this problem. What are the uncontrollable inputs? What are the controllable inputs?
• Compose problem statement into a comprehensive mathematical model.
Give the linear program you have developed. Explain the objective function and the constraints. Show how these address the purpose of the report.
• Propose and justify optimal solution in context of the problem statement.
Provide the complete solution to the linear program. Note that this will be the response to question #1 of the Case Problem. Include Excel output to support answer.
• Perform sensitivity analysis of the optimal solution. Questions #2, #3, and #4 of the Case Problem each consider alternatives to the original problem. Respond to each of these questions with a short analysis of the differences and the implications of these differences in terms of the problem statement. For which of these does the solution change? Include Excel outputs to support answers.
• Communicate the solution to an appropriate audience. This report is for the upper management of the company. Make sure your explanations are appropriate, professional, and do a good job explaining the outcomes to someone who may not be mathematically minded. Include a response to question #5 of the Case Problem.

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