Question: A firm prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firms goal is to maximize the
A firm 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 35X1+30X2+35X3+25X4 St 10X1+9X2+10X3+13X4 <= 20 (Constraint 1) X1+X2+X3+X4>=2 (Constraint2) X1+X2<=1 (Constraint 3) X1+X3>=1 Constraint 4) X2=X4 (Constraint 5) a) Which of the warehouse locations will/will not be selected? b) What is the net present Value of the optimal Solution? c) How much of the Capital will be spent?
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