A Company Wants to Build a New Factory in Either

question 10

Essay

A company wants to build a new factory in either Atlanta or Columbia. It is also considering building a warehouse in whichever city is selected for the new factory. The following table shows the net present value (NPV) and cost of each facility. The company wants to maximize the net present value of its facilities, but it only has $15 million to invest.
Formulate the ILP for this problem.
$$\begin{array} { c l c c } \text { Variable } & \text { Decision } & \begin{array} { c } \text { NPV } \\\text { (\$million) }\end{array} & \begin{array} { c } \text { Cost } \\\text {( \$ millon )}\end{array} \\\hline \mathbf { X } _ { 1 } & \text { Factory in Columbia } & 3 & 10 \\\mathbf { X } _ { \mathbf { 2 } } & \text { Factory in Atlanta } & 4 & 8 \\\mathbf { X } _ { 3 } & \text { Warehouse in Columbia } & 2 &6\\\mathbf { X } _ { 4 } & \text { Warehouse in Atlanta } & 1 & 5\end{array}$$

Understand different types of psychological conflicts and their implications.

Recognize the role of physiological mechanisms in obesity and hunger.

Grasp the concept of sexual orientation and its different manifestations.

Familiarize with the role of hormones in regulating eating behaviors and body weight.

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Securities

Financial instruments that represent an ownership position in a company (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Basket

A collection or grouping of goods, assets, or financial instruments, often used for diversification or index construction purposes.