Question
A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize
A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital. Max 20x1 + 30 x2 + 10x3 + 15x4 s.t.5x1 + 7x2 + 12x3 + 11x4 21 {Constraint 1} x1 + x2 + x3 + x4 2 {Constraint 2} x1 + x2 1 {Constraint 3} x1 + x3 1 {Constraint 4} x2 = x4 {Constraint 5}
xj={1,iflocationjisselected0,otherwise
Solve this problem to optimality and answer the following questions:
A) Which of the warehouse locations will/will not be selected?
Location 1, Location 2, Location 3, Location 4?
B) What is the net present value of the optimal solution?
C) How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)?
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Combinatorial Dynamics And Entropy In Dimension One
Authors: Lluis Alseda, Jaume Llibre, Michal Misiurewicz
1st Edition
9810213441, 9789810213442
