A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm'sgoal is to maximize the net present value of their decision while not spending more than their currently available capital.Max 20x1 + 25x2 + 20x3+ 30x4s.t. 7x1 + 6x2 + 5x3 + 10x4 s 13 {Constraint 1)X1+ x2 + x3 + x4 2 2 {Constraint 2)X1+ x2 s 1 {Constraint 3}X1+ x3 2 1{Constraint 4}x2 = x4 (Constraint 5}(1, if location jis selected| 0, otherwiseSolve this problem to optimality and answer the following questions:a. Which of the warehouse locations will/will not be selected?Location 1 willLocation 2 willLocation 3 willLocation 4 willb. What is the net present value of the optimal solution? (Round your answer to the nearest whole number.)Net present valuec. How much of the available capital will be spent (Hint: Constraint 1 enforces the available capital limit)? (Round your answer to thenearest whole number.)Available capital

All the formulated LPP is given. We can solve this by excel.

Answered: A firm has prepared the following…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.5: Shortest Path Models

Problem 32P

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