Question: 3 . Lupin, a construction company, are evaluating the selection of five projects over a 3 - year planning horizon. For this purpose, their total

3. Lupin, a construction company, are evaluating the selection of five projects over a 3-year planning horizon. For this purpose, their total available budget is 300 million and they decide the equal allocation of the budget over 3 years. The following table gives the expected profits for each project and the associated yearly expenditures.
Projects Expenditure (in millions)/ year Profits (in millions)
Year 1 Year 2 Year 3
12043280
2162840160
31236880
42816460
5322440120
Now Lupin wants to maximize its profit. Based on the information given above, answer the following questions.
a) Write down the objective function of the Integer programming consistent with the objective of Lupin [2]
b) Write down the constraints of Integer programming consistent with the objective of Lupin [6]
c) Which projects should be selected? What will be the maximum return for Lupin? (You can use either excel or QM for windows to solve the problem)[2]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related General Management Questions!