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 xxxx
stxxxxConstraint
x x x xConstraint
x xConstraint
x xConstraint
x xConstraint
xjiflocationjisselectedotherwisexjiflocationjisselectedotherwise
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.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
