D5 - go–no-go integer program where the decision...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
In a typical capital-budgeting problem, decisions involve the selection of a number of potential investments. The investment decisions might be to choose among possible plant locations, to select a configuration of capital equipment, or to settle upon a set of research-and-development projects. Often it makes no sense to consider partial investments in these activities, and so the problem becomes a
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: go–no-go integer program, where the decision variables are taken to be x j = 0 or 1, indicating that the j th investment is rejected or accepted. Assuming that c j is the contribution resulting from the j th investment and that a i j is the amount of resource i , such as cash or manpower, used on the j th investment, we can state the problem formally as: Maximize...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online