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Linear Programming

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Linear programming: Analytical methods of supply chain management

Problem 1
You have six projects from which to select (P1, P2, P3, P4, P5, P6). The net present value (NPV) per project is given below. You are given the following constraints also:

(a) Due to limitations on the hours a project manager will be available, a maximum of four out of six projects could be selected.

(b)If Projects 2, 3, and 4 all are selected, then Project 5 must be selected.

(c)If Project 2 is selected, then, and only then, Project 3 could be selected. However, Project 2's selection is not dependent on Project 3's selection.

NPV
($millions)
$100
$150
$20
$380
$40
$80
Project
1
2
3
4
5
6

Question: Which projects would you select and what is the Net Present Value?

Define the decision variables, the objective function, and the constraints within your answer to this question. Then, solve the model using Excel Solver. Finally, copy your spreadsheet into the appendix of your Word report and submit your Excel file to the dropbox.

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Solution Summary

The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. All the steps are clearly shown and Excel formulas are provided so that the student can answer similar questions in the future. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.

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