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Extra Credit - Project Selection

The document describes a linear programming problem to select projects that maximize total profit given constraints on labor costs and budget. It aims to select projects P1 through P5 with the objective of maximizing $1800P1 + $1600P2 + $3500P3 + $1300P4 + $1700P5. The optimal solution is to select only Project P3, which yields the highest maximum profit of $3500.

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Oreoluwa Adediwura
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19 views

Extra Credit - Project Selection

The document describes a linear programming problem to select projects that maximize total profit given constraints on labor costs and budget. It aims to select projects P1 through P5 with the objective of maximizing $1800P1 + $1600P2 + $3500P3 + $1300P4 + $1700P5. The optimal solution is to select only Project P3, which yields the highest maximum profit of $3500.

Uploaded by

Oreoluwa Adediwura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Extra credit - Project Selection

Decision Variables:
P1 = Project P1 candidate
P2 = Project P2 candidate
P3 = Project P3 candidate
P4 = Project P4 candidate
P5 = Project P5 candidate

Objective Function:
Maximize Z = Max 1800P1 + 1600P2 + 3500P3 + 1300P4 + 1700P5

Constraints:
Labor = 15P1 + 10P2 + 20P3 + 8P4 + 11P5 <= 20 (units in 1000)
Budget = 500P1 + 600P2 + 1000P3 + 500P4 + 700P5 <= 1000 (units in 1000)
Binary = P1, P2, P3, P4, P5 = Binary

If project is selected Value = 1


If project is not selected Value = 0

Lindo Format:
Max 1800P1 + 1600P2 + 3500P3 + 1300P4 + 1700P5
s.t.
Budget) 500P1 + 600P2 + 1000P3 + 500P4 + 700P5 <= 1000
Labor) 15P1 + 10P2 + 20P3 + 8P4 + 11P5 <= 20
Project)p1+p2+p3+p4+p5 = 1
End
INT 5
Lindo Solution
Global optimal solution found.
Objective value: 3500.000
Objective bound: 3500.000
Infeasibilities: 0.000000
Extended solver steps: 0
Total solver iterations: 0
Elapsed runtime seconds: 0.12

Model Class: PILP

Total variables: 5
Nonlinear variables: 0
Integer variables: 5

Total constraints: 4
Nonlinear constraints: 0

Total nonzeros: 20
Nonlinear nonzeros: 0

Variable Value Reduced Cost


P1 0.000000 -1800.000
P2 0.000000 -1600.000
P3 1.000000 -3500.000
P4 0.000000 -1300.000
P5 0.000000 -1700.000

Row Slack or Surplus Dual Price


1 3500.000 1.000000
BUDGET 0.000000 0.000000
LABOR 0.000000 0.000000
PROJECT 0.000000 0.000000

The highest profit possible is $3500 ($3500000, or $1,000 units). Because Project P3 produced a "1" value while
others produced a "0," it must be carried out.

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