Comprehensive model formulation exercise Q1: New product development Problem A Leisure Food Company plans to develop some new products. The following table shows relevant data for six potential foods which are under considera tion. The company wants to know which projects should be selected so asto maximize total pr ofits. There are some constrains for project selection. First, the available capital is at most 170 thousand dollars, and the available researchers are no more than 35 people. Second, project 3 and project 4 are closely related, meaning that these two projects must be select ed simultaneously. Third, project 5 must be selected if project 2 or project 3 is selected. Fo urth, considering the potential risks, at most two projects could be selected among project 1, 4, and 6. Fifth, considering the future development, at least one project should be select ed among project 3, 4, and 5. Please help this company to determine the optimal combinations of new products. Table 1 Data table Capital require Researchers r Project Profit ment equirement 1 50 11 65 2 65 16 90 3 45 9. 80 4 55 7 90 40 60 90 110 24 5

Comprehensive model formulation exercise Q1: New product development Problem A Leisure Food Company plans to develop some new products. The following table shows relevant data for six potential foods which are under considera tion. The company wants to know which projects should be selected so asto maximize total pr ofits. There are some constrains for project selection. First, the available capital is at most 170 thousand dollars, and the available researchers are no more than 35 people. Second, project 3 and project 4 are closely related, meaning that these two projects must be select ed simultaneously. Third, project 5 must be selected if project 2 or project 3 is selected. Fo urth, considering the potential risks, at most two projects could be selected among project 1, 4, and 6. Fifth, considering the future development, at least one project should be select ed among project 3, 4, and 5. Please help this company to determine the optimal combinations of new products. Table 1 Data table Capital require Researchers r Project Profit ment equirement 1 50 11 65 2 65 16 90 3 45 9. 80 4 55 7 90 40 60 90 110 24 5

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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