Quiz 3_F2011

Quiz 3_F2011 - MGMT 30600 Quiz 3, Fall 2011 Name: Section:...

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MGMT 30600 – Quiz 3, Fall 2011 Name: Section: ___________________________ Question 1 : (8 points) Achieve Inc. plans to purchase three types of products: 1, 2 and 3 from two suppliers: A and B. There is a contract cost of $1,000 and $1,500 associated with each supplier, respectively, if any product is purchased from that supplier. The price and demand table is shown below: Purchase Price ($ per unit) Product 1 Product 2 Product 3 Supplier A $15 $10 $5 Supplier B $12 $12 $6 Selling Price ($ per unit) $19 $17 $9 Maximum Demand (units) 900 800 450 Achieve Inc. cannot sell any product by more than the corresponding maximum demand. Formulate an ILP (Integer Linear Programming) model to determine which supplier(s) to use and how many products of each type to purchase from the contracted supplier(s) to maximize total profit. ( Hint : Use a binary variable for each supplier with a value of 1 if that supplier is used and 0 otherwise.) Decision variables: (2 points) Objective function: (2 points) over please ->
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Quiz 3_F2011 - MGMT 30600 Quiz 3, Fall 2011 Name: Section:...

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