Table 10-4 a Company Has Decided to Use 0−1 Integer Programming to Programming

question 85

Multiple Choice

Table 10-4
A company has decided to use 0−1 integer programming to help make some investment decisions. There are three possible investment alternatives from which to choose, but if it is decided that a particular alternative is to be selected, the entire cost of that alternative will be incurred (i.e., it is impossible to build one-half of a factory) . The integer programming model is as follows:
-Table 10-4 presents an integer programming problem. What is the meaning of Constraint 2?

• A) Both alternatives 1 and 2 must be selected.
• B) If alternative 2 is selected, alternative 1 must also be selected.
• C) Either alternative 1 or alternative 2 must be selected.
• D) No more than one alternative may be selected.
• E) None of the above

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Definitions:

Programmed Decisions

Decisions that are routine and repetitive, made according to established guidelines or procedures.

Nonprogrammed Decisions

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, requiring creative solutions.

Certainty

The state of being sure or confident about something, often with clear, predictable outcomes.

Risk

The possibility of loss, damage, or any other undesirable event.