Question: KPS Communications is planning to bring wireless internet access to the town of Ames, Iowa. Using a geographic information system, KPS has divided Ames into

KPS Communications is planning to bring wireless internet access to the town of Ames, Iowa. Using a geographic information system, KPS has divided Ames into the following 5 by 5 grid. The values in each block of the grid indicate the expected annual revenue (in $1,000s) KPS will receive if wireless internet service is provided to the geographic area represented by each block.



KPS Communications is planning to bring wireless internet


KPS can build wireless towers in any block in the grid at a cost of $150,000 per tower. Each tower can provide wireless service to the block it is in and to all adjacent blocks. (Blocks are considered to be adjacent if they share a side. Blocks touching only at cornerpoints are not considered adjacent.) KPS would like to determine how many towers to build and where to build them to maximize profits in the first year of operations. (If a block can receive wireless service from two different towers, the revenue for that block should be counted only once.)
a. Create a spreadsheet model for this problem and solve it.
b. What is the optimal solution and how much money will KPS make in the first year?
c. Suppose KPS is required to provide wireless service to all of the blocks. What is the optimal solution and how much money will KPS make in the firstyear?

Expected Annual Revenue by Area (in $1,000s) $62 $34 $64 $57 $32 $68 $43 S43 71 48 $57 S38 $70 $6 $73 $42 $34 $61 30 $56 $65 $51 5

Step by Step Solution

3.30 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Incidence Matrix 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Times Covered Covered Revenue in 1000s 1 1 1 0 0 0 1 0 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Excel file Icon

167-B-M-L-M-D-A (225).xlsx

300 KBs Excel File

Students Have Also Explored These Related Management Leadership Questions!