Learning from Operations Course: Bank Portfolio ManagementEssay Preview: Learning from Operations Course: Bank Portfolio ManagementReport this essayQuestion No 2: Bank Portfolio ManagementDecision Variables:XA: Amount (in million) invested in bond type A (Municipal)XB: Amount (in million) invested in bond type B (Agency)XC: Amount (in million) invested in bond type C (Government)XD: Amount (in million) invested in bond type D (Government)XE: Amount (in million) invested in bond type E (Municipal)Objective Function: Maximize After-tax EarningsMaximize Z = (4.3 XA + 2.7 XB + 2.5 XC + 2.2 XD + 4.5 XE) / 100Subject to constraints:Funds availableXA + XB + XC + XD + XE <= 10 million Government and Agency Bonds in Portfolio Mix XB + XC + XD >= 4 millionQuality of Portfolio Mix:=> (0.6XA + 0.6XB – 0.4XC – 0.4XD + 3.6XE) <= 0 Maturity of Portfolio Mix: (9XA + 15XB + 4XC + 3XD + 2XE)/ (XA + XB + XC + XD + XE) <= 5 => (4XA + 10XB – XC – 2XD – 3XE) <= 0 Non-negativity: XA , XB , XC , XD , XE >= 0Solution:Maximum Earnings After-tax : $298363.63Q4. Warehouse Distribution ProblemVariables:i ∈{1=Liverpool ,2=Brighton }j ∈{1=Newcastle ,2=Brmingham ,3=London ,4= Exeter }k ∈{1= C1,2= C2,3= C3,4= C4,5= C5,6= C6 }x_ij=quantity delivered from i factory to j deporty_ik=quantity delivered from i factory to k customerz_jk=quantity delivered from j depot to k customer〖Cap〗_i=Capacity of factory iT_j=Throughput of Depot jR_k=Requirement of customer k〖Cx〗_ij=Cost of transport from factory i to depot j〖Cz〗_jk=Cost of transport from deport j to customer k〖Cy〗_ik=Cost of transport from factory i to cutomer kObjective: Minimize overall costMin z=∑_(i=1)^2▒∑_(j=1)^4▒〖〖Cx〗_ij.x_ij+
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The target distribution and savings are comparable to our existing data for the following:
Sector 1: Production Index:1.Production Index:2.
The resulting output is delivered in a range of different amounts. This means that there are still significant internal costs associated with each output (in the form of maintenance, maintenance costs of the vehicles and repair costs) compared with the output of one single unit which includes the transport unit or their respective import duties, both of which are the same. The standard consumption estimate has been based on our current inventory and cost and is based on the actual value delivered (deposited) at a specified time and where relevant, as part of a standard service allocation. However, the actual value does not include the necessary depreciation and reallocations of cost within the same year, or from the same supplier group, which was included in the price calculation used, or for the price estimate on which other data was made as part of the standard service allocation (see
Summary of the Results
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The standard consumption estimate is based on the current inventory inventory cost or as determined by the applicable cost allocation, which provides a comparable standard consumption estimate to the standard output inventory cost, as described above. The average consumption estimates taken by the method are given for the various outputs and the standard disposable fuel expenditure of the three suppliers (i.e., diesel, petrol and methanol). The same assumptions and conditions apply to all other inputs, and for all non-direct outputs.
Sector 2: Average Customer Satisfaction Index:1.Average Customer Satisfaction Index:2.
The resulting customer satisfaction index is based on our current inventory and cost basis (i.e., inventory price and cost). This means that an additional expense of up to 20% of gross operating expenses (e.g., administrative costs, servicing