Question: Tower Engineering Corporation is considering undertaking several proposed projects for the next fiscal year. The projects, the number of engineers required for each project, and

Tower Engineering Corporation is considering undertaking several proposed projects for the next fiscal year. The projects, the number of engineers required for each project, and the NPV for each project are summarized in the following table:

Project
1 2 3 4 5 6
Engineers Required 40 35 27 48 50 63
NPV ($1,000,000s) 2.0 1.2 1.0 2.5 2.6 3.2

Formulate an integer linear program that maximizes Tower's NPV, subject to constraints, which will be stated in the questions that follow.

Let Pi = 0 or 1, indicate if project i will not be undertaken or will be undertaken respectively.

Consider the following two requirements:

1) At least two out of Projects 2,3 and 4 MUST be undertaken if Project 1 is NOT undertaken.

2) If Project 1 is completed, then neither Projects 2 nor 5 can be completed.

Which solution below is INCOMPATIBLE with the first requirement but compatible with the second requirement?

None of the others.

P1 = 1, P2 = 0, P3 = 1, P4 = 1, P5 = 0, P6 = 0

P1 = 0, P2 = 0, P3 = 1, P4 = 0, P5 = 0, P6 = 0

P1 = 0, P2 = 0, P3 = 1, P4 = 1, P5 = 0, P6 = 0

P1 = 1, P2 = 0, P3 = 1, P4 = 1, P5 = 1, P6 = 0

PreviousNext

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 Finance Questions!