A firm has prepared the followingbinary integer program to evaluate anumber of potential locations for newwarehouses. The firm's goal is tomaximize the net present value of theirdecision while not spending more thantheir currently available capital.Max 15x1 + 25x2 + 15x3+ 35x4s.t. 8x1 + 11x2 +6x3 + 6x4 s 17{Constraint 1}X1 + x2 +X1 + x2 < 1 {Constraint 3}X1 + x3 2 1 {Constraint 4}X2 = X4 {Constraint 5}X4 2 2 {Constraint 2}X3+S 1, if location jis selected(0, otherwiseSolve this problem to optimality andanswer the following questions:Xja. Which of the warehouse locationswill/will not be selected?Location 1 willLocation 2 willLocation 3 willLocation 4 willbe selectednot be selected b. What is the net present value of theoptimal solution? (Round youranswer to the nearest wholenumber.)Net present valuec. How much of the available capitalwill be spent (Hint: Constraint 1enforces the available capital limit)?(Round your answer to the nearestwhole number.)Available capital

Answered: Image /qna-images/answer/42791205-538e-4fea-8543-56f749e78384.jpg

Answered: A firm has prepared the following…

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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(1) Find an optimal assignment of trucks to routes to minimize the total cost (using the Hungarian Method). B C 6 12 15 10 11 7 16 9 Truck / Route 1 2 3 4 Step la: Row subtraction (show your steps, e.g., see cell 1A) Truck / Route B 1 2 3 4 A 10 11 9 14 Step 1b: Column subtraction. Truck / Route 1 2 3 4 A 10-6=4 = = = = = B = с = C Step 2: Testing for optimal solution (show your lines covering the zero entries). What is the minimum number of lines required to cover all zeros? D 8 14 10 13 D = = D =
2. Maximize subject to p = x + 2y X +3y24 2x + y 18 x ≥ 0, y ≥ 0.
James Lawson's Bed and Breakfast, in a small historicMississippi town, must decide how to subdivide (remodel) the largeold home that will become its inn . There are three alternatives:Option A would modernize all baths and combine rooms, leavingthe inn with four suites, each suitable for two to four adults.Option B would modernize only the second floor; the results wouldbe six suites, four for two to four adults, two for two adults only.Option C (the status quo option) leaves all walls intact. In this case,there are eight rooms available, but only two are suitable for fouradults, and four rooms will not have private baths. The details ofprofit and demand patterns that will accompany each option are: Which option has the highest expected monetary value?
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Variable cells Cell $B$6 $C$6 $D$6 Cell $E$2 $E$3 Name Constraints- $E$4 Variable 1 Variable 2 Variable 3 Name Resource A Resource B Resource C Final Value Cost 3 10 20 Reduced 30 18 0 -7 Final Value Shadow Price Constraint R.H. Side 7.78 6 Objective Coefficient 10 30 40 20 20 30 40 What is the range of optimality for the objective coefficient for Variable 2? Allowable Increase 23 50 Allowable Increase 10 50 1E+30 Allowable Decrease 17 10 1E+30 Allowable Decrease 12.5 10 22
The following is a payoff an Electronic Company's Product The State of Nate Decision Alternative 0.69 0.31 S2 D1 14 D2 13 D3 11 The Expected values for the payoff table as follows: E(D1= 5.72 EID2)= 11.45 EID3) 9.14 What should be the payoff value for the D2 under S1 to keep the solution.or Clek Sne and Sub to abeit Cliok Soella e all ao
I have two marlets , Hilltor & Biztop, where I will be delivertrg 1 900ds 9oods. Hilltop is located at coordinates L2,0) ano I have 14 twckloads gorp to it. Biztop is lo cated at Coordinetes (16,14) and I have 7 truckloads goirg to it. Use an optimol method to find the location for building a ware house to the two marketi. Record the X Supply Coordinate of the optimal aarehouse location . Round to 2Decimali
The owners of Sweet-Tooth Bakery have determined thatthey need to expand their facility in order to meet their increaseddemand for baked goods. Th e decision is whether to expand nowwith a large facility or expand small with the possibility of havingto expand again in fi ve years.Th e owners have estimated the following chances for demand:• Th e likelihood of demand being high is 0.70.• Th e likelihood of demand being low is 0.30.Profi ts for each alternative have been estimated as follows:• Large expansion has an estimated profi tability of either$80,000 or $50,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $40,000, assumingdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If the bakeryexpands at this point, the profi tability is to be $50,000.(a) Draw a decision tree showing the decisions, chanceevents, and their probabilities, as well as the profi tabilityof…
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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.