Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please read the question CAREFULLY and answer ALL PARTS OF THE QUESTION CORRECTLY. ANY wrong OR incomplete answers WILL BE DOWNVOTED. Please DOUBLE CHECK your
Please read the question CAREFULLY and answer ALL PARTS OF THE QUESTION CORRECTLY. ANY wrong OR incomplete answers WILL BE DOWNVOTED. Please DOUBLE CHECK your work BEFORE posting the solution. Thank you!
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. \\( \\operatorname{Max} 20 x_{1}+30 x_{2}+10 x_{3}+15 x_{4} \\) s.t. \\( 5 x_{1}+7 x_{2}+12 x_{3}+11 x_{4} \\leq 21 \\) \\{Constraint 1\\} \\( x_{1}+x_{2}+x_{3}+x_{4} \\geq 2 \\) \\{Constraint 2\\( \\} \\) \\( x_{1}+x_{2} \\leq 1\\{ \\) Constraint 3\\( \\} \\) \\( x_{1}+x_{3} \\geq 1\\{ \\) Constraint 4\\( \\} \\) \\( x_{2}=x_{4} \\) \\{Constraint 5\\} \\( x_{j}=\\left\\{\\begin{array}{l}1, \\text { if location } j \\text { is selected } \\\\ 0, \\text { otherwise }\\end{array}\ ight. \\) Solve this problem to optimality and answer the following questions: a. Which of the warehouse locations will/will not be selected? a. Which of the warehouse locations will/will not be selected? b. What is the net present value of the optimal solution? Note: Round your answer to the nearest whole number. c. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? Note: Round your answer to the nearest whole numberStep 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