A mixed integer linear programming (MILP) model can be used advantageously to assist in preparing a report for Mr Wolff Since the annual fixed costs of operating the lockboxes are not known exactly we formulate a model that can be used without that information Then determine if information more precise than the $20,000 $30,000 estimate is needed to make a final decision We formulate a model that can be solved to find the best set of locations with a given number of lockboxes It is then solved 4 times to find the best set of locations with 1 lockbox, up to 2 lockboxes, up to 3 lockboxes, and up to 4 lockboxes We then can address the question of whether annual operating cost information is needed from some or all of the potential lockbox locations

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We use the following variable definitions P 1 if a lockbox is in ... View the full answer