OSCM 230
Homework 05
H
O M E W O R K
# 5 S
O L U T I O N S
I
N T E G E R
P
R O G R A M M I N G
618.
There are 8 decision variables (A, H, E, N, S, M, B, and R) corresponding to the eight investment
options. Each variable can take only one of two values: = 1 if the investment is chosen, and = 0 if it is not.
Objective: Maximize total return = Sum of (Return per investment * Investment DV)
Subject to:
$500A+ $1,000H+ $350E+ $490N+ $700S+ $270M+ $800B+ $400R
≤
$3,000
Cost ($'000)
A
+ H
≤
1
Bond
E
+ N
+ S
≥
2
Utility
M
+ B
+ R
≥
2
Regular
A
+ H
+ E
+ N
+ S
+ M
+ B
+ R
≥
5
Total
All
vars
=
0, 1
Binary
Solution: See file P618.XLS.
Ando
ver
Hamil
ton
Easy
Nebr
aska
South
ern
Man
uel
Build
ers
Rest
Invest? (1 = Yes)
0
1
1
1
0
1
1
0
Exp return ($'000)
$50
$100
$30
$45
$65
$20
$90
$35
$285.0
619.
There are 7 binary decision variables (A to G) corresponding to the seven investment options. Each
variable can take only one of two values: = 1 if the investment is chosen, and = 0 if it is not.
Objective: Maximize total return = Sum of (Return per investment * Investment DV)
Subject to:
$5.0A+ $8.0B+ $3.5C+ $10.0D+ $8.5E+ $12.0F+ $4.0G
≤
$30
$ available ($'000)
F
≤
G
F and G
A
+ B
+ C
+ D
+ E
+ F
+ G
≥
4
At least 4
A
+ B
=
1
A and B
A,
B,
C,
D,
E,
F,
G
=
0, 1
Binary
Solution: See file P619.XLS.
A
B
C
D
E
F
G
Selected? (1 = yes)
1
0
0
0
1
1
1
Return
$500
$640
$390
$700
$750
$1,000
$300
$2,550.0
622.
There are 6 binary decision variables (P
1
to P
6
) corresponding to the six projects. Each variable can
take only one of two values: = 1 if the project is chosen, and = 0 if it is not.
Objective: Maximize total NPV = Sum of (NPV * Project DV)
There are six constraints: one for each year’s R&D budget.
Page 1 of 6
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
OSCM 230
Homework 05
Solution: See file P622.XLS.
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '09
 Trus
 Optimization, Tampa, binary decision, new warehouses

Click to edit the document details