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M6.5 A truck with the capacity to load 4,000 cubic feet of cargo is available to transport items selected from the following table. ITEM VALUE

M6.5 A truck with the capacity to load 4,000 cubic feet of cargo is available to transport items selected from the following table. ITEM VALUE VOLUME (cu. ft.) A $2,500 950 B $1,400 850 C $1,600 700 D $900 650 E $1,600 900 F $1,100 600 G $1,500 850 If selected, an item must be shipped in its entirety (i.e.no partial shipments or multiple shipments). Of items A, C, and G - at least two of these items must be selected. If item C is selected, the E cannot be selected. The shipment must include at least five of these items. Which of these items should be selected to maximize the value of the shipment? SOLUTION: The optimal solution, the value of the shipment, should be $8,100. All decision variables should be 0 or 1. Be sure to use standard LP template and include the formulation in your Excel file. Formulation: Formulate this problem by defining decision variables, objective function, and constraints in standard format as specified/demonstrated in videos. Questions: a) Which items should be included in the shipment? b) If the value of item D increased to $1500 - does this change the value of the shipment and the items are included in the shipment? Explain.

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