Question: Question # 2 ( 2 0 p . ) : Consider a capital budgeting example with five projects from which to select. Let x i

Question # 2(20p.) : Consider a capital budgeting example with five projects from which to select. Let xi=1 if project i is selected, 0 if not, for i=1,2,3,4,5. Projects cost ((:$1,000} are 100,200,150,75, and 300, respectively. Suppose that the budget is 550. Consider the following requirements: Choose at least 3 projects, if project 3 is chosen, project 4 must not he chosen and if project 1 is chosen, project 5 must not be chosen. Estimated profit ($1,000) for each project are 250,400,300,150, and 500, respectively. Suppose that we want to maximize the profit. Based on the given information answer the following questions:
a) Formulate the integer programming model.
b) Introduce slack/surplus/artificial variables and prepare LP model in a standard form.
c) Use the standard form of LP given in part (b) to constract the initial simplex tableau and fill in all cell values. (DO NOT SOLVE THE PROBLEM)
 Question # 2(20p.) : Consider a capital budgeting example with five

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!