A consulting firm has five projects to consider. Each project will require time and capital in the next two quarters, as shown in the following table. Revenues from each project are also shown. ProjectTime in quarter 1Time in quarter 2Capital in quarter 1Capital in quarter 2RevenueA585000450012000B3123500250010000C75180080015000D23200019005000E1513000250020000Develop a model to determine which projects should be selected to maximize total revenue. There is a time limit of 24 in the first quarter and 25 in the second quarter. Available capital is $6000 and $5000 in quarters 1 and 2 respectively. Projects B and C cannot be done together. Thus, if Project B is selected, Project C cannot be selected.Determine the optimal revenue.

Decision Variable: Suppose - A = 1 if project A is selected, otherwise 0B = 1 if project B is…

Answered: A consulting firm has five projects to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

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A consulting firm has five projects to consider. Each project will require time and capital in the next two quarters, as shown in the following table. Revenues from each project are also shown.

Project	Time in quarter 1	Time in quarter 2	Capital in quarter 1	Capital in quarter 2	Revenue
A	5	8	5000	4500	12000
B	3	12	3500	2500	10000
C	7	5	1800	800	15000
D	2	3	2000	1900	5000
E	15	1	3000	2500	20000

Develop a model to determine which projects should be selected to maximize total revenue. There is a time limit of 24 in the first quarter and 25 in the second quarter. Available capital is $6000 and $5000 in quarters 1 and 2 respectively. Projects B and C cannot be done together. Thus, if Project B is selected, Project C cannot be selected.

Determine the optimal revenue.

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