Chapter 7 Homework

# Chapter 7 Homework - alternative limited warehouse...

This preview shows pages 1–7. Sign up to view the full content.

capital requirements alternative net present value year 1 year 2 year 3 limited warehouse expansion \$ 4,000.00 \$ 3,000.00 \$ 1,000.00 \$ 4,000.00 X1 Extensive warehouse expansion \$ 6,000.00 \$ 2,500.00 \$ 3,500.00 \$ 3,500.00 X2 Test market new products \$ 10,500.00 \$ 6,000.00 \$ 4,000.00 \$ 5,000.00 X3 Advertising campaign \$ 4,000.00 \$ 2,000.00 \$ 1,500.00 \$ 1,800.00 X4 Basic research \$ 8,000.00 \$ 5,000.00 \$ 1,000.00 \$ 4,000.00 X5 Puchase new equipment \$ 3,000.00 \$ 1,000.00 \$ 500.00 \$ 900.00 X6 Capital funds available \$ 10,500.00 \$ 7,000.00 \$ 8,750.00 A>> B>> C >> A >> Develop and solve an integer programming model for maximizing the net present value B >> Assume that only one of the warehouse expansion prjects can be implemented. Modify your model of part (a) C >> Suppose that if test marketing of the new product is carried out, the advertising campsign also must be onducted. Modify our formulation of Part (b) to reflect this new situation.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Maximize 4000X1+6000X2+10500X3+4000X4+8000X5+3000X6 S.T. 3000X1+2500X2+6000X3+2000X4+5000X5+1000X6<=10500 1000X1+3500X2+4000X3+1500X4+1000X5+500X6<=7000 4000X1+3500X2+5000X3+1800X4+4000X5+900X6<=8750 X1, X2, X3, X4, X5, X6 >=0 and Binary B >> X1+X2<=1 C >> X3-X4=0 MAX 0 0 1 1 0 1 << binary 4000 6000 10500 4000 8000 3000 OBJECTIV 17500 S.T. 3000 2500 6000 2000 5000 1000 9000 <= 10500 1000 3500 4000 1500 1000 500 6000 <= 7000 4000 3500 5000 1800 4000 900 7700 <= 8750 MAX 0 0 1 1 0 1 4000 6000 10500 4000 8000 3000 OBJECTIV 17500 S.T. 3000 2500 6000 2000 5000 1000 9000 <= 10500 1000 3500 4000 1500 1000 500 6000 <= 7000 4000 3500 5000 1800 4000 900 7700 <= 8750 1 1 0 <= 1 MAX 0 0 1 1 0 1 4000 6000 10500 4000 8000 3000 OBJECTIV 17500 S.T. 3000 2500 6000 2000 5000 1000 9000 <= 10500 1000 3500 4000 1500 1000 500 6000 <= 7000 4000 3500 5000 1800 4000 900 7700 <= 8750 1 1 0 <= 1 1 -1 0 = 0
set up production cost manufacturing cost/unit 4 cylinder connecting rods 2000 15 6 cylinder connecting rods 3500 18 X4C= the number of 4 cylinder connecting rods produced next week X6C = the number of 6 cylinder connecting rods produced next week S4C = 1 if the production line is set up to produce the 4 cylinder connecting rod: 0 if oth S6C = 1 if the production line is set up to product the 6 cylinder connecting rod: 0 if othe D >> Write an objective funtion for minimizing the cost of production for next week A >> Using the decision variables X4 and S4 write a constraint that limits next weeks production fo the 4 cylinde connecing rod to either 0 or 8000 B >> using the decision variables X6 and S6 write a constraint tha tlimits next weeks prouction o the 6 cylinder connecting rod to either 0 or 6000 units C >> write three constraints that, taken together, limit the production of connection rods for next week

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
weekly production capabilities A >> X4C = 8000S4C 8000 B >> X6C = 6000S6C 6000 C >> X4C X6C S4C S6C D >> MINIMIZE 0 6000 0 1 herwise 15 18 2000 3500 erwise 1 -8000 1 -6000 1 1 variable variable fixed fixed
objective 111500 0 = 0 0 = 0 1 = 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Microsoft Excel 14.0 Answer Report Worksheet: [Chapter 7 Homework.xlsx]12 Report Created: 3/31/2016 11:27:50 AM Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: GRG Nonlinear Solution Time: 0.047 Seconds. Iterations: 1 Subproblems: 0 Solver Options Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative Objective Cell (Min) Cell Name Original Value Final Value \$L\$52 objective City 20 436512 436512 Variable Cells Cell Name Original Value Final Value Integer \$L\$55 City 1 Carrier 1 0 0 Binary \$M\$55 City 1 Carrier 2 0 0 Binary \$N\$55 City 1 Carrier 3 0 0 Binary \$O\$55 City 1 Carrier 4 0 0 Binary \$P\$55
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern