Table 10-3 a Company Has Decided to Use 0−1 Integer Programming to Programming

question 10

Multiple Choice

Table 10-3
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:
Maximize 5000 X₁ + 7000X₂ + 9000X₃
Subject to: X₁ + X₂ + X₃ ≤ 2 Constraint 1
-X₁ + X₂ ≤ 0 Constraint 2
25,000 X₁ + 32,000 X₂ + 29,000 X₃ ≤ 62,000 (budget limit)
16 X₁ + 14 X₂ + 19 X₃ ≤ 36 (resource limitation)
all variables = 0 or 1
where X₁ = 1 if alternative 1 is selected,0 otherwise
X₂ = 1 if alternative 2 is selected,0 otherwise
X₃ = 1 if alternative 3 is selected,0 otherwise
Solution x₁ = 1,x₂ = 0,x₃ = 1,objective value = 14,000.
-Table 10-3 presents an integer programming problem.What is the meaning of Constraint 1?

• A)If X₁ is selected,X₂ must also be selected.
• B)No more than two alternatives may be selected.
• C)At least two alternatives must be selected.
• D)If X₂ is selected,X₁ must also be selected.
• E)None of the above

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Definitions:

Time-Value

Refers to the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.

No Further Deposits

A situation or condition where no additional deposits or contributions are allowed.