Multiple Choice
Table 10-1
A company has decided to use 0-1 integer programming to help make some investment decisions.There are three possible investment alternatives from which to choose,but if it is decided that a particular alternative is to be selected,the entire cost of that alternative will be incurred (i.e. ,it is impossible to build one-half of a factory) .The integer programming model is as follows:
Maximize 5000 X1 + 7000X2 + 9000X3
Subject to: X1 + X2 + X3 ≤ 2 (only 2 may be chosen)
25000X1 + 32000X2 + 29000X3 ≤ 62,000 (budget limit)
16 X1 + 14 X2 + 19 X3 ≤ 36 (resource limitation)
all variables = 0 or 1
where X1 = 1 if alternative 1 is selected,0 otherwise
X2 = 1 if alternative 2 is selected,0 otherwise
X3 = 1 if alternative 3 is selected,0 otherwise
The optimal solution is X1 = 0,X2 = 1,X3 = 1
-According to Table 10-1,which presents an integer programming problem,if the optimal solution is used,what would the value of the objective function be?
A) 21,000
B) 12,000
C) 16,000
D) 2
E) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
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