Note: This Problem Requires the Use of a Linear Programming $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$

question 27

Multiple Choice

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces) . The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10) . To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1{Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which locations are selected?

• A) Locations 1, 3, 4, and 5
• B) Locations 1, 2, 4, and 5
• C) Locations 1, 2, 3, and 5
• D) Locations 2, 3, 4, and 5
• E) Locations 1, 3, and 5

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Definitions:

Inventory Formula

The equation used to calculate the value of a company's inventory, commonly stated as Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory.

Physical Flow

The actual movement of goods or materials through a manufacturing process, from receipt of raw materials to delivery of finished products.

Weighted Average Method

An inventory valuation method that applies a weighted average cost to the goods available for sale, to calculate cost of goods sold and ending inventory.

Responsibility Centre

A management accounting tool in which parts of an organization are allocated responsibility for controlling costs, revenues, or investments.