The table below shows the estimated long-term profit (Net Present Value) for each project as well as the amount of investment capital required to start the project.
management
Description
MGMT 430 Binary Integer Programming
Assignment–Week 4–Dropbox 5
Consider a small Oil
production firm with 5 competing oil production projects, A - E.
The table below shows the estimated long-term
profit (Net Present Value) for each project as well as the amount of investment
capital required to start the project.
You have been contacted to help select the
best combination of projects to maximize the Net Present Value subject to the
capital investment limit of $32 million.
|
Production
Project |
||||||
|
A |
B |
C |
D |
E |
||
|
Estimated
Profit (millions) |
25 |
20 |
19 |
28 |
21 |
|
|
Capital
Required (millions) |
11 |
8 |
14 |
19 |
13 |
|
1) Formulate a Binary
Integer Programming (BIP) model on a spreadsheet.
2) Solver the model using
Solver.
