HELP - OPTIMIZATION MODELS

How do I set up the solver parameters?????

Fast is allocating next years budget among its divisions. The R&D (Research and Development) division must determine which research projects, named creatively 1 through 7, to fund. Each project requires various software, hardware, and outside consulting expenses which are termed Additional Costs. Each project also requires certain Fast engineers.

Fast R&D has been given a budget allocation of $1.2 million to cover Additional Costs and has 35 Fast staff engineers available for the potential projects.

R&D has developed the following table of projected costs and staffing for the seven potential projects, as well as a prediction of the dollar return to Fast if the project succeeds. Return implies all costs have been deducted.

Project	1	2	3	4	5	6	7	Engineers Available / Budget
Return	$600,000	$680,000	$750,000	$400,000	$350,000	$725,000	$340,000
Fast Engineers Required	8	10	7	4	8	10	8	35
Additional Costs	$190,000	$400,000	$370,000	$180,000	$225,000	$275,000	$130,000	$1,200,000

Due to scheduling conflicts, R&D has determined that at most, one of projects 1 and 2 should be pursued. Additionally, if project 2 is chosen, project 4 must also be chosen.

Develop a model to select the best projects within the budget, i.e. the combination of projects that delivers the greatest total return. Use of integer or binary constraints may be necessary. Use Simplex LP if possible.

NOTE:

This problem can be solved without the use of If statements. However, should you choose to use If statements, you will have to use the Evolutionary engine and that may not find a true, optimum solution. In that case, initialize your decision variables to 0.

Problem #2: Resource Allocation Problem

Task 2: State the objective function as a mathematical formula.

Task 2.1: Identify all constraints.

Task 2.2: Build an appropriate decision model in Excel.

Task 2.3: Set up constraints with "left side" and "right side".

Task 2.4: Binary constraints connected to model

Task 2.5: Solver dialog set up properly?

Task 2.5.1: -objective cell

Task 2.5.2: -constraints

Task 2.5.3: -correct engine

Task 2.6: Solution stated or clearly identified.

Make Unconstrained Variables Non-Negative Select a Solving Method: Solving Method Select the GRC Nonlinear engine for Solver Prablems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Prablems, and select the Evolutionary engine for Solver problems that are nonsmooth. Make Unconstrained Variables Non-Negative Select a Solving Method: Solving Method Select the GRC Nonlinear engine for Solver Prablems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Prablems, and select the Evolutionary engine for Solver problems that are nonsmooth