Question
Tower Engineering Corporation is considering undertaking several proposed projects for the next fiscal year. The projects, the number of engineers required for each project, and
Tower Engineering Corporation is considering undertaking several proposed projects for the next fiscal year. The projects, the number of engineers required for each project, and the NPV for each project are summarized in the following table:
Project | ||||||
1 | 2 | 3 | 4 | 5 | 6 | |
Engineers Required | 40 | 35 | 27 | 48 | 50 | 63 |
NPV ($1,000,000s) | 1.2 | 2.0 | 2.5 | 1.0 | 3.2 | 2.6 |
Formulate an integer linear program that maximizes Tower's NPV, subject to constraints, which will be stated in the questions that follow.
Let Pi = 0 or 1, indicate if project i will not be undertaken or will be undertaken respectively.
The most appropriate objective function for Tower Engineering Corporation is given as:
Min. 2P1 + 1.2P2 + P3 + 2.5P4 + 2.6P5 + 3.2P6
Max. P1 + P2 + P3 + P4 + P5 + P6
Min. 1.2P1 + 2P2 + 2.5P3 + P4 + 3.2P5 + 2.6P6
Max. 1.2P1 + 2P2 + 2.5P3 + P4 + 3.2P5 + 2.6P6
Max. 2P1 + 1.2P2 + P3 + 2.5P4 + 2.6P5 + 3.2P6
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