Question: Please help me solve both questions THANK YOU SO MUCH! #8 A, B, C #9 A, B C, D 8. Spencer Enterprises must choose among
Please help me solve both questions
THANK YOU SO MUCH!
#8
8. Spencer Enterprises must choose among a series of new investment alternatives. The potential investment alternatives, the net present value of the future stream of returns. the capital requirements, and the available capital funds over the next three years are sum- marized as follows: Alternative Limited warehouse expansion Extensive warehouse expansion Test market new product Advertising campaign Basic research Purchase new equipment Capital funds available Net Present Value ($) 4.000 6,000 10.500 4,000 8,000 3.000 Capital Requirements ($) Year 1 Year 2 Year 3 3,000 1.000 4,000 2.500 3,500 3,500 6,000 4.000 5.000 2.000 1,500 1.800 5,000 1,000 4,000 1.000 500 900 10,500 7.000 8.750 a. Develop and solve an integer programming model for maximizing the net present value. b. Assume that only one of the warehouse expansion projects can be implemented. Mod- ify your model of part (a). c. Suppose that, if test marketing of the new product is carried out, the advertising cam- paign also must be conducted. Modify your formulation of part (b) to reflect this new situation. the Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder auto- mobile engines using the same production line. The cost required to set up the production line to produce the 4-cylinder connecting rods is $2000, and the cost required to set up production line for the 6-cylinder connecting rods is $3500. Manufacturing costs are $15 for each 4-cylinder connecting rod and $18 for each 6-cylinder connecting rod. Hawkins makes a decision at the end of each week as to which product will be manufactured the following week. If a production changeover is necessary from one week to the next the weekend is used to reconfigure the production line. Once the line has been set up the weekly production capacities are 6000 6-cylinder connecting rods and 8000 4-cylinder connecting rods. Let *4 = the number of 4-cylinder connecting rods produced next week to the number of 6-cylinder connecting rods produced next week sa = 1 if the production line is set up to produce the 4-cylinder connecting rods: O if otherwise 86 = 1 if the production line is set up to produce the 6-cylinder connecting rods: O if otherwise a. Using the decision variables xa and se write a constraint that limits next week's produc- tion of the 4-cylinder connecting rods to either 0 or 8000 units. b. Using the decision variables X and so write a constraint that limits next week's produc- tion of the 6-cylinder connecting rods to either 0 or 6000 units. c. Write three constraints that taken together, limit the production of connecting rods for next week. d. Write an objective function for minimizing the cost of production for next week