Consider the following algebraic formulation of a cost- benefit-trade-off problem involving three benefits, where the decisions to be made are the levels of four activities (A1, A2, A3, and A4):
Minimize Cost = 2 A1 + A2 - A3 + 3 A4
Subject to
Benefit 1: 3 A1 + 2 A2 - 2 A3 + 5 A4 ( 80 (minimum acceptable level)
Benefit 2: A1 - A2 + A4 ( 10 (minimum acceptable level)
Benefit 3: A1 + A2 - A3 + 2A4 ( 30 (minimum acceptable level)
And
A1 ( 0 A2 ( 0 A3 ( 0 A4 ( 0
Formulate and solve the spreadsheet model for this problem.