Answered step by step
Verified Expert Solution
Question
1 Approved Answer
R.J. Publishing needs to decide what textbooks to publish and how many of each. The objective is to maximize net profit. For each book, the
R.J. Publishing needs to decide what textbooks to publish and how many of each. The objective is to maximize net profit. For each book, the maximum demand, fixed cost of publishing, variable cost, and selling price are provided in the table below. Fixed Cost Variable Cost Selling Price Book 1 Book 2 Book 3 Book 4 Book 5 Maximum Demand 500 700 900 600 No maximum $9,000 $15,000 $12,000 $10,000 $16,000 $30 $20 $19 $20 $38 $52 $45 $40 $34 $50 R.J. Publishing has the capacity to publish a total of 2000 books. Formulate algebraically this problem as a mixed Binary Integer Programming (BIP) problem. Define the decision variables, objective function, and constraints. (17 points) b. Formulate this same BIP problem on a spreadsheet and SOLVE using Excel Solver (Provide the corresponding Excel Spreadsheet and the Answer Report). Include managerial statements that communicate which books should be published and how many of each. (i.e. describe verbally the results). (9 points)
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