A firm has prepared the following binary integer program to evaluate a number of potential locations for newwarehouses. The firm's goal is to maximize the net present value of their decision while not spending more thantheir currently available capital.Max 20x1 + 30x2 + 10x3 + 15x4s.t. 5x1 + 7x2 + 12x3 + 11x4 ≤ 21 {Constraint 1}X1 + X2 + x3 + x4 ≥ 2 {Constraint 2}X1 + X2 ≤ 1 {Constraint 3}X1 + X3 ≥ 1 {Constraint 4}X2 = x4 {Constraint 5}xj1, if loaction j is selected0, otherwiseWhich of the constraints ensures that at least two of the potential sites will be selected? Multiple ChoiceOOOConstraint 1Constraint 2Constraint 3Constraint 4Constraint 5

This is a Binary integer program problem. BIP means either 1 or 0 will be the selected value of any…

Answered: A firm has prepared the following…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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An oil company is considering two sites on which to drill. The sites are described in the foliowing table. Complete parts (a) through (b) below. Site A Profit if ol is found: $120 million Loss if no oil is found: $20 million Probablity of finding oil: 0.2 Site B: Profit if ol is found: $180 million Loss if no oil is found: $30 milion Probability of finding oil: 0.1 a. Which site has the larger expected profit? Site A has the larger expected profit. Site B has the larger expected profit. The expected profits for both sites are the same. b. If the expected profit for both sites is not the same, by how much is the expected profit larger? milion (Round to the nearest tenth as needed.)
Based on the following sequential decision tree, compute the expected payoff of node 7. It is (type number only, no decimals, no dollar sign) Investment A (-$70,000) Investment B (-$50,000) 156000 2 3 .30 .70 .15 .55 .30 5 6 (-$20,000) $75,000 (-$17,000) (-$9,000) $80,000 7 8 40 .60 $45,000 20 .80 $60,000 35 .65 $55,000 $300,000 $60,000 $200,000 $70,000 $105,000 $40,000
Even though independent gasoline stations have been having a difficult time, Ian Langella has been thinking about starting his own independent gasoline station. Ian's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, lan developed the following table: Size of First Station Small Medium The value of the return under this decision is $ c) Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be Good Market $40,000 $90,000 $105,000 $320,000 Large Very Large For example, if lan constructs a small station and the market is good, he will realize a profit of $40,000. This exercise contains only parts b, c, and d. b) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be The value of the return under this decision is…
Benny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black- and-white copying. He is considering two machines, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $639, and there is a cost of $0.030 per page copied. Machine 2 has a monthly lease cost of $747, and there is a cost of $0.045 per page copied. Customers are charged $.08 per page copied. a. What is the break-even point for each machine? b. If Benny expects to make 75,000 copies per month, what would be the monthly cost for each machine? (round your answers to the highest whole number)
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(a) Mohawk Valley Furniture Warehouse has purchased a retail outlet with six departments (A, B, C, D, E, and F), as shown below. The anticipated number of customers that move between the departments each week is given as follows: 70 and 50 customers move from department A to department B and F respectively; 100 customersmove from department B to department E; 70 customers move from department C to department B; 80 customers move from department D to department C; 40 and 30 customers move from department E to departments A and F respectively; and 60 and 100 customers move from department F to departments B and E respectively. The initial layout is given in the matrix below. (i) Construct the load summary chart for Mohawk's layout.) (ii) Evaluate the current layout in terms of non-adjacent loads.
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A Manager has the problem of assigning four new machines to three production facilities. The respective profits derived are as shown. If only one machine is assigned to a production facility, determine the optimal assignment. Profits (K’000) production facility Machine A B C A 10 10 14 B 10 11 13 C 12 10 10 D 13 12 11
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Direction: Solve the LP models using Graphical Solution. A dietitian has been asked by the athletic director to develop a snack that athletes can use in their training programs. The dietitian intends to mix two seperate products to make the snack. The following information (on the table below): Product A costs Php20 per ounce, while Product B costs Php10 per ounce. Determine the optimal quantities of each product that will give the minimized cost.
III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington. He is trying to find out how many must he sell in order to start earning money. From an initial feasibility study, he will incur a total of 200,000 pesos for equipments and other fixed expenses. He is planning to sell the wellington at 500 pesos for each incurring direct expenses of 150,000 pesos in the production. According to Lino Bataumbakal's feasibility study, should he start selling the beef wellington, he will have the following data: Price 500 2,100 12 10 6. What is the Supply Function? 7. What is the Equilibrium Point? Q 4 6 1. What will be the TOTAL COST EQUATION? 2. How many units must he sell in order to break even? 3. How much should be her revenue to earn a profit worth 100,000 pesos? 4. If Lino would like a Net Profit of 300,000 pesos, how many units should he sell? 5. What is the Demand Function?.
Four qualified postgraduate students are to be allocated to four professors. The preference given by student (scale 1-10) is shown as table below. Student A В C D Professor James Jordan Janet 7 8 6. Jessy 5 8. 7 (a) Formulate a linear programming model for the problem. [NOTE: Please use x, where i = 1, 2,...,n -Professor and j=1, 2,...,m -Student to represent your decision variables.] (b) From the output below, what is the optimal allocation plan and what is the total preference scales obtained from the allocation plan? Model Variable Original Value Final Value Value x11 1 1 Value x12 1 Value x13 1 Value x14 Value x21 Value x22 Value x23 1 1 1 1 1 Value x24 1 Value x31 Value x32 Value x33 1 1 1 1 Value x34 1 Value x41 1 Value x42 1 Value x43 1 Value x44 1 1 699 445

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