Consider a small Oil production firm with 6 competing oil production projects, A - F. The...
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Consider a small Oil production firm with 6 competing oil production projects, A - F. The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project. You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million. Production Projects |A|B|C|D|E|F| Estimated Profit (Smillion) $26 $21 $18 $30 $28 $22 Capital required (Smillion) $11 $8 $14 $19 $19 $13 1) Formulate a Binary Integer Programming (BIP) model on a spreadsheet. 2) Solver the model using Solver. Consider a small Oil production firm with 6 competing oil production projects, A - F. The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project. You have been contacted to help select the best combination of projects to maximize the Net Present Value subject to the capital investment limit of $32 million. Production Projects |A|B|C|D|E|F| Estimated Profit (Smillion) $26 $21 $18 $30 $28 $22 Capital required (Smillion) $11 $8 $14 $19 $19 $13 1) Formulate a Binary Integer Programming (BIP) model on a spreadsheet. 2) Solver the model using Solver.
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Related Book For
Understanding Business Statistics
ISBN: 978-1118145258
1st edition
Authors: Stacey Jones, Tim Bergquist, Ned Freed
Posted Date:
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