The Texas Electronics Company (TEC) is contemplating a research and development program encompassing eight major projects. The

Question:

The Texas Electronics Company (TEC) is contemplating a research and development program encompassing eight major projects. The company is constrained from embarking on all projects by the number of available scientists (40) and the budget available for projects ($300,000).

Following are the resource requirements and the estimated profit for each project:

Expense Scientists Profit ($000) Project Required ($00) 60 36 110 9. 82 53 8. 29 147 4 16 192 56 185 6. 61 173 48 165 8.

a. What is the maximum profit, and which projects should be selected?
b. Suppose that management decides that projects 2 and 5 are mutually exclusive. That is, TEC should not undertake both. As a result, what are the revised project portfolio and the revised maximum profit?
c. Suppose that management also decides to undertake at least two of the projects involving consumer products. (These happen to be projects 5-8.) As a result, what are the revised project portfolio and the revised maximum profit?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...