Question: PLEASE. DO NOT COPY PASTE OTHER PEOPLES WORK ON CHEGG. THIS QUESTION IS DIFFERENT THAN THE OTHERS SLIGHTLY. THERE ARE 5 BOOKS... NOT 4 AND
PLEASE. DO NOT COPY PASTE OTHER PEOPLES WORK ON CHEGG. THIS QUESTION IS DIFFERENT THAN THE OTHERS SLIGHTLY. THERE ARE 5 BOOKS... NOT 4 AND THE DATA IS DIFFERENT IN THIS ONE SLIGHTLY SO PLEASE READ THE QUESTION CAFEFULLY....
R.J. Publishing needs to decide what textbooks to publish and how many of each. The objective is to maximize net profit.
For each book, the maximum demand, fixed cost of publishing, variable cost, and selling price are provided in the table below.
|
| Maximum Demand | Fixed Cost | Variable Cost | Selling Price |
| Book 1 | 500 | $9,000 | $30 | $52 |
| Book 2 | 700 | $15,000 | $20 | $45 |
| Book 3 | 900 | $12,000 | $19 | $40 |
| Book 4 | 600 | $10,000 | $20 | $34 |
| Book 5 | No maximum | $16,000 | $38 | $50 |
R.J. Publishing has the capacity to publish a total of 2000 books.
- Formulate algebraically this problem as a mixed Binary Integer Programming (BIP) problem. Define the decision variables, objective function, and constraints. (17 points)
- Formulate this same BIP problem on a spreadsheet and SOLVE using Excel Solver (Provide the corresponding Excel Spreadsheet and the Answer Report). Include managerial statements that communicate which books should be published and how many of each. (i.e. describe verbally the results). (9 points)
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