Tower Engineering Corporation Is Considering Undertaking Several Proposed Projects for the Next

question 61

Essay

Tower Engineering Corporation is considering undertaking several proposed projects for the next fiscal year. The projects, the number of engineers and the number of support personnel required for each project, and the expected profits for each project are summarized in the following table:
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Formulate an integer program that maximizes Tower's profit subject to the following management constraints:
1)
Use no more than 175 engineers
2)
Use no more than 150 support personnel
3)
If either project 6 or project 4 is done, both must be done
4)
Project 2 can be done only if project 1 is done
5)
If project 5 is done, project 3 must not be done and vice versa
6)
No more than three projects are to be done.

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Definitions:

Innovation

The process of transforming ideas into new or improved products, services, or processes, driving economic growth and solving problems.

Horizontal Differentiation

Variability of products that are essentially similar but differ in terms of attributes like design, flavor, or brand.

Consumer Welfare

The overall satisfaction, utility, or economic well-being that consumers experience from purchasing and consuming goods and services.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.