(a) Winsor Co has five potential projects to choose from for the next 2-year period. The yearly expenditures in millions dollars ($M) and returns (SM) for each project are tabulated in Table Q4(a) below. Project A B C Ꭰ E Year 1 (SM) 35 18 35 22 20 Year 2 (SM) 41 20 32 23 18 Return (SM) 150 100 140 86 75 Table Q4(a) The available funds for the first and second years are $120M and $140M, respectively. The company can take on a maximum of 4 projects. In order to maintain the existing workforce, it must engage in a minimum of 2 projects. The company has to decide which projects should be executed over the 2-year period. Formulate the linear optimization problem above as a 0-1 variable model where the objective is to maximize the profit. Determine the constraints involved.

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Question 4
Winsor Co has five potential projects to choose from for the next 2-year period.
The yearly expenditures in millions dollars (SM) and returns (SM) for each
project are tabulated in Table Q4(a) below.
(a)
Project
A
B
C
D
E
Year 1 (SM)
35
18
35
22
20
Year 2 (SM)
41
20
32
23
18
Return (SM)
150
100
140
86
75
Table Q4(a)
The available funds for the first and second years are $120M and $140M,
respectively. The company can take on a maximum of 4 projects. In order to
maintain the existing workforce, it must engage in a minimum of 2 projects. The
company has to decide which projects should be executed over the 2-year period.
Formulate the linear optimization problem above as a 0-1 variable model where
the objective is to maximize the profit. Determine the constraints involved.
Transcribed Image Text:Question 4 Winsor Co has five potential projects to choose from for the next 2-year period. The yearly expenditures in millions dollars (SM) and returns (SM) for each project are tabulated in Table Q4(a) below. (a) Project A B C D E Year 1 (SM) 35 18 35 22 20 Year 2 (SM) 41 20 32 23 18 Return (SM) 150 100 140 86 75 Table Q4(a) The available funds for the first and second years are $120M and $140M, respectively. The company can take on a maximum of 4 projects. In order to maintain the existing workforce, it must engage in a minimum of 2 projects. The company has to decide which projects should be executed over the 2-year period. Formulate the linear optimization problem above as a 0-1 variable model where the objective is to maximize the profit. Determine the constraints involved.
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