
Practical Management Science
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ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:ng Enabled: Chapter 7 Using Binary Integer Progr... 6
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A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's
goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 30x1 + 35x2 + 15x3+ 20x4
s.t. 12x1 + 8x2 + 5x3 + 11x4 s 20 (Constraint 1}
x1+ x2 + x3 + x4 2 {Constraint 2)
x1+ x2 1 {Constraint 3}
x1+ x3 2 1{Constraint 4)
x2 = x4 (Constraint 5}
1, if location j is selected
Ij =
0, otherwise
Solve this problem to optimality and answer the following questions:
a. Which of the warehouse locations will/will not be selected?
Location 1 will
Location 2 will
Location 3 will
Location 4 will
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