G.L.

Bajaj institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot no. 2, knowledge park-3, greater Noida
PGDM BATCH- 2022-24

(Subject Name-Business Process Re-Engineering)

Term- 5
PGDM Batch 2022-24

ASSIGNMENT-3

SUBMITTED BY- SUBMITTED TO-

Shivani Jaiswal Mr. Ravi Kishor Ranjan
PGDM22301
Section- D
 Linear Program Formulation for Investment Planning:-
Decision Variables:

 ai: Amount invested in activity A at the beginning of year i (integers, 0≤ai

≤60000).
 bi: Amount invested in activity B at the beginning of year i (integers, 0≤bi≤60000).
 c: Amount invested in activity C at the beginning of year 2 (integer, 0≤c≤60000).
 d: Amount invested in activity D at the beginning of year 5 (integer, 0≤d≤60000).
 Objective Function:

Maximize the total amount of money at the end of year 5:

Maximize 1.4a_1 + 1.4a_2 + 1.7b_1 + 1.7b_2 + 1.9c + 1.3d

Constraints:

1. Budget constraint: The total amount invested in all activities at the beginning of
each year cannot exceed the available budget of $60,000.

 Year 1: a1+b1≤60000
 Year 2: a2+b2+c≤60000 (note that C becomes available this year)
 Year 3: a3+b3≤60000
 Year 4: a4+b4≤60000
 Year 5: a5+b5+d≤60000 (note that D becomes available this year)

2. Investment limitations: Activity A and B can only be invested in during the first
five years.

 a6=b6=0
3. Exclusivity of C and D: Each opportunity, C and D, can only be chosen once.

 c≤60000 (ensures C is used at most once)

 d≤60000 (ensures D is used at most once)
4. Non-negativity constraints: All amounts invested must be non-negative.

 ai,bi,c,d≥0 for all i

By solving this linear program, you can find the optimal investment plan that
maximizes the total amount of money the investor has at the end of five years.