excel assignment

Integer Programming Problems

IP Problem 1

A company is preparing to choose a group of capital projects to initiate. There are a total of five projects proposed. Each project lasts for three years, requiring investment in each of those years at the end of three years the project is expected to produce a return.

All of the projects look attractive, but there is only 200,000 that can be invested each year. Choose the set of projects that produces the highest overall return for the funds available.

IP Problem 2

A charitable organization plans to pack food boxes for distribution to needy families. They wish to fill some standard boxes that can hold a volume of 250. They have a large stock of donate items:

It is desired to maximize the total protein content of the box, subject to the volume limit. Determine how many of the available items to pack into each box.

IP Problem 3

A successful company is expanding and planning to build a factory in either of two cities (or both). In addition, a warehouse will be built, but it must be in a city where one of the factories was built. Investment levels and the Net Present Value (NPV) have been determined as:

There is a ten million available for the entire investment. Determine which cities for factory and warehouse locations such that NPV is maximized within investment limits.

IP Problem 4

An automobile maker is developing a low cost, fuel efficient vehicle for commercial use. Several alternative choices for engine, transmissions and suspensions. Formulate and solve an Integer Programming solution to find the lowest cost feasible combination.

123

1200,00050,00030,00020,000

2300,000100,00080,00050,000

3500,000150,000150,00050,000

4100,00050,0004,00010,000

5400,00050,00050,00050,000

Total

Return

Year

Project

ItemSizeProtein

A2525

B5040

C2015

D1515

E3010

F7085

G155

DecisionCostNPV

Factory in City 169

Factory in City 235

Warehouse in City 156

Warehouse in City 224

ComponentCostRemarks

Engines

Diesel$225Not compatible with Type A suspension

Electrical$180Not compatible with Type 1 or 2 Transmissions

Rotary$300

Transmissions

Type 1$150

Type 2$200

Type 3$200Not compatible with Type B Suspension

Suspensions

Type A$180

Type B$230