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

question 29

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 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:

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including payment deadlines and any possible discounts for early payment.

General Journal Entries

Entries made in the general journal to record financial transactions in the accounting system.

Invoice Price

The price listed on an invoice, representing the amount charged by the seller to the buyer for goods or services provided.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically calculated as a percentage of the purchase price.