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 | 25 | 21 | 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.
Suppose that the company decides to use the Greedy Heuristic Approach where the selection criterion is "highest NPV per Engineer Required ratio". Assume there are 150 engineers available. Which of the following would be the solution generated by this approach?
Note: Discard any requirements defined in earlier questions.
P1 = 1, P2 = 0, P3 = 0, P4 = 1, P5 = 1, P6 = 0
None of the others.
P1 = 1, P2 = 1, P3 = 0, P4 = 1, P5 = 0, P6 = 0
P1 = 0, P2 = 0, P3 = 0, P4 = 1, P5 = 1, P6 = 1
P1 = 1, P2 = 0, P3 = 0, P4 = 1, P5 = 1, P6 = 1
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