1. No graphing calculator is allowed. Please DO NOT USE EXCEL OR ANY COMPUTER SOFTWARE OR WEBSITE to solve the problems or to draw graphs. If you answer any question using a graphing calculator, software or a website, you will not receive any credit for it. 2. Show all work. 3.Make sure you have answered questions. 4. Please submit in Microsoft Word.
Unformatted Attachment Preview
Homework 5: OPRE 315
Please answer the following questions giving all details.
1. The Charming City Engineering Company is considering five projects for the next year. The
number of engineers and the number of support personnel required for each project, and the
expected profit for each project are given below.
28 26 36 31 45
Support Personnel Required
26 28 38 46 36
Profit (in thousands of dollars) 250 320 250 210 350
Formulate a capital budgeting problem that maximizes the company’s total profit subject to the
– Use no more than 120 engineers
– Use no more than 150 support personnel
– If project 1 is done, then project 2 must be done
– At most four projects can be selected
(a) Define the decision variables.
(b) Determine the objective function. What does it represent?
(c) Determine all the constraints. What does each constraint represent?
Note: Do NOT solve the problem after formulating.
2. The director of career advising at the Charm City Community College wants to use decision
analysis to provide information to help students decide which 2-year degree program they should
pursue. The director has set up the following payoff table for four of the most popular and
successful degree programs at the college that shows the estimated 5-year gross income (in
thousands of dollars) from each degree for three future economic conditions:
Determine which 2-year degree program to pursue and the profit associated with it by finding the
optimal decision using the following decision criteria:
c. Equal likelihood
d. Minimax regret
3. For the problem given in Question 2, the probabilities for the economic conditions are given by
P(Recession) = 0.2, P(Average) = 0.4, and P(Good) = 0.4.
a. Compute the expected value for each decision and select the best one.
b. Compute the expected regret value for each decision and select the best one.
c. Calculate and interpret the expected value of perfect information.
4. Solve the following integer programming model by using a computer software:
Maximize Z = 5×1 + 6×2
3×1 + 4×2 < 10 4x1 + 2x2 < 15 x1, x2 > 0 and integer
5. Juan Hernandez, a Cuban athlete who visits the United States and Europe frequently, is
allowed to return with a limited number of consumer items not generally available in Cuba. The
items, which are carried in a duffel bag, cannot exceed a weight of 8 pounds. Once Juan is in
Cuba, he sells the items at highly inflated prices. The three most popular items in Cuba are denim
jeans, CD players, and CDs of U.S. rock groups. The weight and profit (in U.S. dollars) of each
item are as follows:
Juan wants to determine the combination of items he should pack in his duffel bag to maximize
his profit. This problem is an example of a type of integer programming problem known as a
“knapsack” problem. Formulate this problem by defining the decision variables, objective
function, and all the constraints. Do NOT solve after formulating.
6. Consider a capital budgeting example with five projects from which to select. Let Xi = 1 if
project i is selected, 0 if not, for i = 1, 2, 3, 4, 5. Write the appropriate constraint(s) for each of
the following conditions. Conditions are independent of one another.
(a) Select at least four projects.
(b) If project 2 is selected, then project 4 must also be selected.
(c) Projects cost 160, 200, 100, 225, and 175 dollars respectively. The budget is 500 dollars.
(d) No more than three of the five projects can be selected.
7. The Charm City Consulting has five projects to consider. Each will require employee time
(weeks) in the next two months according to the table below. Profit from each project is also
shown in the table below.
Project Weeks required in Month 1
Weeks required in Month 2
Profit in dollars
There is 25 weeks employee time available in the first month and 30 weeks in the second
Formulate a zero-one capital budgeting integer programming problem to maximize total profit for
this situation by defining the decision variables, objective function, and all the constraints.
Do NOT solve after formulating.
Purchase answer to see full
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.