Solve this problem to optimality and answer the following questions:

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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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 35x1 + 25x2 + 15x3+ 30x4
s.t. 7x1 + 8x2 + 7x3 + 13x4 ≤ 18 {Constraint 1}
x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
x1 + x2 ≤ 1 {Constraint 3}
x1 + x3 ≥ 1 {Constraint 4}
x2 = x4 {Constraint 5}

 

xj = {1, if location j is selected0, otherwisexj = 1, if location j is selected0, otherwise

 

Solve this problem to optimality and answer the following questions:

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