Formulate and Solve Optimization Models with Binary Variables and Logical

question 16

Multiple Choice

Formulate and solve optimization models with binary variables and logical constraints.
Use the table below to answer the following question(s) by invoking the binary constraints on the variables using the standard Solver.
Below is the spreadsheet for a project selection model: $\begin{array}{|l|l|l|l|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } & \text { G } \\\hline & \text { Project Selection } & & & & & & \\1 & \text { Model } & & & & & & \\\hline 2 & & & & & & & \\\hline 3 & \text { Data } & & & & & & \\\hline 4 & & & & & & & \text { Available } \\ & & \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } & \text { Project 5 } & \text { Resources } \\\hline 5 & \begin{array}{l}\text { Expected Return } \\(\mathrm{NPV}) \end{array} & \$ 160,000 & \$ 200,000 & \$ 125,000 & \$ 150,000 & \$ 225,000 \\\hline 6 & \begin{array}{l}\text { Cash } \\\text { requirements }\end{array} & \$ 45,000 & \$ 70,000 & \$ 28,000 & \$ 52,000 & \$ 65,000 &\$175,000\\\hline 7 & \begin{array}{l}\text { Personnel } \\\text { requirements }\end{array} & 7 & 4 & 2 & 6 & 4 & 10 \\\hline 8 & & & & & & & \\\hline 9 & \text { Model } \\\hline 10 & \\\hline 11 & \begin{array}{l}\text { Project selection } \\\text { decisions }\end{array} \\\hline 12 & \text { Cash Used } \\\hline 13 & \text { Personnel Used } \\\hline 14 & \text { Return } \\\hline\end{array}$
-What is the amount of personnel used for Project 2?

• A) 3
• B) 4
• C) 6
• D) 11

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Definitions:

Machine Shop

A workshop where various machines are used for cutting, shaping, and finishing metals or other materials to manufacture parts or products.

Grinding

A process involving repetitive tasks to achieve a certain level of status or accomplishment, commonly referenced in gaming and work contexts.

Drilling

Drilling is the process of creating holes in the earth's surface or other materials, often for exploration or extraction of natural resources.

Pressing

Urgent or demanding immediate attention or action, often due to critical importance or severity.