A Company Wants to Build a New Factory in Either

question 37

Essay

A company wants to build a new factory in either Atlanta or Columbia.It is also considering building a warehouse in whichever city is selected for the new factory.The following table shows the net present value NPV)and cost of each facility.The company wants to maximize the net present value of its facilities,but it only has $15 million to invest.
Formulate the ILP for this problem.
Variable Decision
NPV
$million)
Cost $million)
^X₁ Factory in Columbia 3 10
^X₂ Factory in Atlanta 4 8
^X₃ Warehouse in Columbia 2 6
^X₄ Warehouse in Atlanta 1 5

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Definitions:

Third Party

A third party is an individual or entity who is not directly involved in a legal agreement or dispute but may be affected by it or have rights or obligations related to it.

Improper Person

An individual deemed unsuitable or unqualified under certain criteria or regulations.

Criminal

Pertaining to or involving crimes, describing actions that are against the law.

Liability

A financial obligation or amount that an individual or entity owes to another.