A Firm Has Prepared the Following Binary Integer Program to Evaluate

question 36

Multiple Choice

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if loaction } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints ensures that at least two of the potential sites will be selected?

• A) Constraint 1
• B) Constraint 2
• C) Constraint 3
• D) Constraint 4
• E) Constraint 5

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Definitions:

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Arrangements between companies to divide markets or customers to avoid competition.

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A legal status describing someone who has been found responsible for committing a crime or wrongdoing.

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The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinate petroleum policies and prices internationally.