A firm has some projects to consider: a new research project; a new equipment project; and potential business trips. The cost and return of the projects are as follows: New researchNew equipmentBusiness trips Return 13 35 9BudgetYear 1 Capital 5 15 320Year 2 Capital 3 0 212Year 3 Capital 2 11 219 At most 2 projects can be chosen from these choices. In addition, new equipment project has the highest priority among these choices.Formulate (without solving) an integer programming question to maximize the firm’s return.

Given data is Project New research New equipment Business trips Budget Return 13 35 9 Year 1 capital 5 15 3 20 Year 2 capital 2 0 2 12 Year 3 capital 3 11 2 19 The formulation of LPP without solving it is given below. Let x, y, and z represent new research, new equipment, business trips Objective function: Max Z=13x+35y+9z Subject to constraints: 1.) 5x+15y+3z≤20 (year 1 budget)2.) 2x+0y+2z≤12 (year 2 budget)3.) 3x+11y+2z≤19 (year 3 budget)4.) x+y+z≤2 (At most 2 projects to be selected)5.) y=1 (Highest priority project)x,y,z≥0

Answered: A firm has some projects to consider: a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A firm has some projects to consider: a new research project; a new equipment project; and potential business trips. The cost and return of the projects are as follows: