Formulate and Solve Optimization Models with Binary Variables and Logical

question 49

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: $\begin{array}{|l|l|l|l|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } & \text { G } \\\hline & \text { Project Selection } & & & & & & \\1 & \text { Model } & & & & & & \\\hline 2 & & & & & & & \\\hline 3 & \text { Data } & & & & & & \\\hline 4 & & & & & & & \text { Available } \\ & & \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } & \text { Project 5 } & \text { Resources } \\\hline 5 & \begin{array}{l}\text { Expected Return } \\(\mathrm{NPV}) \end{array} & \$ 160,000 & \$ 200,000 & \$ 125,000 & \$ 150,000 & \$ 225,000 \\\hline 6 & \begin{array}{l}\text { Cash } \\\text { requirements }\end{array} & \$ 45,000 & \$ 70,000 & \$ 28,000 & \$ 52,000 & \$ 65,000 &\$175,000\\\hline 7 & \begin{array}{l}\text { Personnel } \\\text { requirements }\end{array} & 7 & 4 & 2 & 6 & 4 & 10 \\\hline 8 & & & & & & & \\\hline 9 & \text { Model } \\\hline 10 & \\\hline 11 & \begin{array}{l}\text { Project selection } \\\text { decisions }\end{array} \\\hline 12 & \text { Cash Used } \\\hline 13 & \text { Personnel Used } \\\hline 14 & \text { Return } \\\hline\end{array}$
-Which of the following cells is set as the objective cell in Solver?

• A) $G$12
• B) $F$14
• C) $G$14
• D) $B$12

---

Definitions:

Oil-Spill Clean Up

The process and activities involved in removing or minimizing oil contaminants from the environment following an oil spill.

Equipment Damage Prevention

Strategies and practices aimed at reducing the likelihood of damage to machinery and equipment.

Environmental Management Accounting

The identification, collection, estimation, analysis, internal reporting, and use of materials and energy flow information, environmental cost information, and other cost information for both conventional and environmental decision-making within an organization.

Life Cycle Costing

An analysis method that considers all costs associated with the acquisition, use, maintenance, and disposal of an asset over its entire life.