A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses The firms goal is to maximize the net present value of their decision while not spending more than their currently available capital Max 15 x 1 25 x 2 15 x 3 35 x 4 s t 8 x 1 11 x 2 6 x 3 6 x 4 17 Constraint 1 x 1 x 2 x 3 x 4 2 Constraint 2 x 1 x 2 1 Constraint 3 x 1 x 3 1 Constraint 4 x 2 x 4 Constraint 5 xj 0, 1 Solve this problem to optimality and answer the following questions Which of the warehouse locations will will not be selected Location 1 will Answer Location 2 will Answer Location 3 will Answer Location 4 will Answer What is the net present value of the optimal solution (Round your answer to the nearest whole number ) Net present value Answer How much of the available capital will be spent (Hint Constraint 1 enforces the available capital limit) (Round your answer to the nearest whole number ) Available capital Answer

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Question: A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firms goal is to maximize

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firms goal is to maximize the net present value of their decision while not spending more than their currently available capital.

Max 15x₁ + 25x₂ + 15x₃+ 35x₄ s.t. 8x₁ + 11x₂ + 6x₃ + 6x₄ 17 {Constraint 1} x₁ + x₂ + x₃ + x₄ 2 {Constraint 2} x₁ + x₂ 1 {Constraint 3} x₁ + x₃ 1 {Constraint 4} x₂ = x₄ {Constraint 5}

xj = 0, 1

Solve this problem to optimality and answer the following questions:

Which of the warehouse locations will/will not be selected?

Location 1 will Answer

Location 2 will Answer

Location 3 will Answer

Location 4 will Answer

What is the net present value of the optimal solution? (Round your answer to the nearest whole number.)

Net present value Answer

How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to the nearest whole number.)

Available capital Answer

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