Problem 3(40%):Chapter 6-Question 7, all parts. Make a spreadsheet model and solve. Include a textbox with the ILP formulation and a separate one for the optimal solution and optimal vale.

All answer should be in excel.

7. Greg Smith would like Lafayette Airlines (LA) to be the next successful low-cost airline. He is considering opening hubs at the following 4 locations: Atlanta, Boston, Chicago, and Detroit. They can open at most one hub at each location. The annual cost of opening and operating a hub at each location, the average rev- enue from a flight originating from each hub, and the annual maximum flight capacity of each hub are given in the following table: HUB OPENING AND AVERAGE REVENUE ANNUAL HUB LOCATION OPERATING COST ($) PER FLIGHT ($) FLIGHT CAPACITY Atlanta 2,500,000 3,000 2,800 Boston 4,500,000 3,800 4,000 Chicago 6,000,000 3,500 7,000 Detroit 3,500,000 4,000 3,500 For each location, Greg needs to make two decisions: 1) Whether or not to open a hub at that location, and 2) How many flights per year should be scheduled to originate from that hub. Of course, the annual number of flights originating from each hub must be within the annual flight capacity. Due to financial restrictions, LA would like to open at most 2 hubs. Due to federal regulations, as a start-up air- line, they can operate at most 10,000 flights per year. Finally, if they open a hub in Detroit, they wish not to open a hub in Chicago. Formulate a mixed integer pro- gramming problem to maximize LA's annual profit (revenue less cost). a. Clearly define the decision variables you would use to solve this problem.