A company must meet the following payment for suppliers’ invoices for cash at the beginning of each of the next six months: Month 1 2 3 4 5 6 Payment $200 $100 $50 $80 $160 $140 At the beginning of month 1, the company has $150 in cash and $200 worth of bond 1, $100 worth of bond 2 and $400 worth of bond 3. All these bonds will not mature in 5 months. However, to meet the payment due dates, the company will have to sell some bonds. A penalty will be charged for any bonds sold before the end of month 6. The penalties for selling $1 worth of each bond are shown in the table below. Penalty for selling $1 worth bond in each month 1 2 3 4 5 6 Available Bond 1 0.07 0.06 0.06 0.04 0.03 0.03 $200 Bond 2 0.17 0.17 0.17 0.11 0 0 $100 Bond 3 0.33 0.33 0.33 0.33 0.33 0 $400 Question: (Use one workbook for each question below) Assuming that all bills must be paid on time, formulate a network problem that can be used to minimize the cost of meeting the cash demands for the next six months. Assume that payment of bills can be made after they are due, but a penalty of $0.02 per month is assessed for each dollar of cash demands that is postponed for one month. Assume all bills must be paid by the end of month 6, modify the model developed in part a) in a separate workbook to minimize the cost of paying the next six months' bills.

A company must meet the following payment for suppliers’ invoices for cash at the beginning of each of the next six...

A company must meet the following payment for suppliers’ invoices for cash at the beginning of each of the next six months:

Month	1	2	3	4	5	6
Payment	$200	$100	$50	$80	$160	$140

At the beginning of month 1, the company has $150 in cash and $200 worth of bond 1, $100 worth of bond 2 and $400 worth of bond 3. All these bonds will not mature in 5 months. However, to meet the payment due dates, the company will have to sell some bonds. A penalty will be charged for any bonds sold before the end of month 6. The penalties for selling $1 worth of each bond are shown in the table below.

		Penalty for selling $1 worth bond in each month
	1	2	3	4	5	6	Available
Bond 1	0.07	0.06	0.06	0.04	0.03	0.03	$200
Bond 2	0.17	0.17	0.17	0.11	0	0	$100
Bond 3	0.33	0.33	0.33	0.33	0.33	0	$400

Question: (Use one workbook for each question below)

Assuming that all bills must be paid on time, formulate a network problem that can be used to minimize the cost of meeting the cash demands for the next six months.

Assume that payment of bills can be made after they are due, but a penalty of $0.02 per month is assessed for each dollar of cash demands that is postponed for one month. Assume all bills must be paid by the end of month 6, modify the model developed in part a) in a separate workbook to minimize the cost of paying the next six months' bills.

Jun 04, 2023

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A company must meet the following payment for suppliers’ invoices for cash at the beginning of each of the next six...

Question: (Use one workbook for each question below)

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