Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
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.
Max 20x1 + 30x2 + 10x3 + 15x4
s.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}
Set up the problem in Excel and find the optimal solution. Which locations are selected?
A) Location 1
B) Location 2
C) Location 4
D) Locations 2 and 4
E) Locations 1 and 3
Correct Answer:
Verified
Q23: In a BIP problem, 1 corresponds to
Q24: Binary variables can have the following values:
A)
Q25: A firm has prepared the following
Q26: If a firm wishes to choose at
Q27: Which of the following techniques or tools
Q29: In a BIP problem, 1 corresponds to
Q30: When binary variables are used in a
Q31: If a firm wishes to choose at
Q32: A firm has prepared the following
Q33: A firm has prepared the following
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