Based Upon the Optimal Solution and Slack Variables, What Recommendations

question 38

Essay

Based upon the optimal solution and slack variables, what recommendations could you make to management?
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Where
S = 1 if the store expansion project is accepted; 0 if rejected
F = 1 if the fleet expansion project is accepted; 0 if rejected
M = 1 if the equipment upgrade project is accepted; 0 if rejected
R = 1 if the market research project is accepted; 0 if rejected
and currency is in $1,000s.
Maximize
75S + 50F + 16E + 12R
s.t.
30S + 30F + 10E + 20R ≤ 85
30S + 35F + 20E + 10R ≤ 60
40S + 50F + 20E + 10R ≤ 100
65S + 55F + 20E + 10R ≤ 125
S, F, E, R = 0, 1 (binary)
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