Question: A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm s goal is to
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 x xxx
stxxxxConstraint
x x x xConstraint
x xConstraint
x xConstraint
x xConstraint
xj if location j is selected otherwise
Solve this problem to optimality and answer the following questions:
Which of the warehouse locations willwill not be selected?
What is the net present value of the optimal solution?
Note: Round your answer to the nearest whole number.
How much of the available capital will be spent Hint: Constraint enforces the available capital limit
Note: Round your answer to the nearest whole number.
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