Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 ( Project selection problem ) : A company wants to invest on some of projects. ( Either the entire project is selected or not

1(Project selection problem): A company wants to invest on some of
projects. (Either the entire project is selected or not at all.) Each of the six projects
has a cost and yields a revenue as shown below.
Project Cost (in $million) Revenue (in $million)
1 $10 $12
2 $40 $50
3 $55 $56
4 $60 $75
5 $15 $18
6 $30 $33
The company has a total budget $150(in $million) that cannot be exceeded. The goal is to invest
the capital in such a way that it maximizes the total revenue. Formulate this situation as a zeroone integer program and find the optimal solution. (4 points)
(a) What is the maximum revenue that can be obtained?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Information Technology

Authors: Carol Brown, Daniel DeHayes, Jeffrey Hoffer, Wainright Marti

7th Edition

132146320, 978-0132146326

More Books

Students also viewed these General Management questions