Question: We have 5 projects for execution over the next 3 years. The expected return for each project and funds needed and available each year (in
We have 5 projects for execution over the next 3 years. The expected return for each project and funds needed and available each year (in thousands dollars) are given as follows:
|
| Year 1 | Year 2 | Year 3 | Return |
| Project 1 | 5 | 1 | 8 | 20 |
| Project 2 | 4 | 7 | 10 | 40 |
| Project 3 | 3 | 9 | 2 | 20 |
| Project 4 | 7 | 4 | 1 | 15 |
| Project 5 | 8 | 6 | 10 | 30 |
| Funds available | 25 | 24 | 23 |
|
Which of the five projects should be executed over the three years knowing that
- Exactly two of the projects 3 , 4 and 5 must be done.
- If project 1 and 3 are done project 5 must be done.
- Project 1 and 2 must be undertaken simultaneously.
Formulate a linear programming which maximize the return. (setup and do not solve)
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