Question
Location Cost of Building at this site Expected profit Clifton $60,000.00 $5,000.00 Mt. Auburn $50,000.00 $6,000.00 Mt. Adams $82,000.00 $10,000.00 Amberly $103,000.00 $12,000.00 Norwood $50,000.00
| Location | Cost of Building at this site | Expected profit |
| Clifton | $60,000.00 | $5,000.00 |
| Mt. Auburn | $50,000.00 | $6,000.00 |
| Mt. Adams | $82,000.00 | $10,000.00 |
| Amberly | $103,000.00 | $12,000.00 |
| Norwood | $50,000.00 | $8,000.00 |
| Covington | $41,000.00 | $3,000.00 |
| Roselawn | $80,000.00 | $9,000.00 |
| Eden Park | $69,000.00 | $10,000.00 |
Innis Construction Company specializes in building X moderately priced homes in Cincinnati, Ohio.
Tom Innis has identified eight potential locations to construct new single-family dwellings, but he cannot put up homes on all of the sites because he has only $300,000 to invest in all projects.
The following table shows the cost of constructing homes in each area and the expected profit to be made from the sale of each home. Note that the home-building costs differ considerably due to lot costs, site preparation, and differences in the models to be built. Note also that a fraction of a home cannot be built.
(a) Formulate Innis's problem using 0-1 integer programming and Excel's solver function.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
WebAssign For A First Course In Differential Equations With Modeling Applications
Authors: Dennis G Zill
11th Edition
1337879770, 9781337879774
