6/14/2023 0 Comments Linear programming solver![]() The steps to overcome this hardship are as follows:Īccording to the given in the problem, we need to determine the amount of loan in million dollars. The hardest part of any optimization problem is building the mathematical model. Developing a mathematical problem statement The bank limits the overall ratio of bad debts on all loans to at most 4%. ![]() To assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. Competition with other financial institutions dictates the allocation of at least 40% of the funds to farm and commercial loans. It is important to note that bad debts are unrecoverable and produce no interest revenue. The table, shown above, provides the data about the available loans. Type of loanĪ bank is in the process of devising a loan policy that involves a maximum of $12 million. The example is adapted from Hamdy Taha’s book available on Amazon. Indeed, Julia will be incorporated to solve the optimization problem. This simple example will help us understand the power of linear programming in solving most of the problems we face in supply chain management and the financial fields. The demonstrated example is about a bank loan policy.
0 Comments
Leave a Reply. |