The owner of the Consolidated Machine Shop has $10,000 available to purchase a lathe, a press, a grinder, or some combination thereof. The following 0–1 integer linear programming model has been developed to determine which of the three machines (lathe, x1; press, x2; or grinder, x3)

should be purchased in order to maximize annual profit:

maximize Z = 1,000x1 + 700x2 + 800x3 (profit, $)

subject to

$5,000x1 + 6,000x2 + 4,000x3 … 10,000 (cost, $)

x1, x2, x3 = 0 or 1 Solve this model by using the computer.

 LO.1