For a Location Problem, If the Variables Are Defined as Xi

question 37

Multiple Choice

For a location problem, if the variables are defined as xi = 1 if an outlet store is established in region i and 0 otherwise, the objective function is best defined by _____ for i = 1, 2, …, n number of outlet stores included in the problem.

• A) Min(∑xi)
• B) Max(∑xi)
• C) Min(πxi)
• D) Max(πxi)

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Definitions:

Cost

The amount of money required to purchase goods or services or the value consumed in the production of goods or services.

Discount Rate

The rate of interest applied to loans provided to commercial banks and other financial institutions by the Federal Reserve through its discount window.

Compounded Annually

Interest calculation method where interest is added to the principal sum at the end of each year, and the subsequent interest calculation includes the previously accumulated interest.