Mathematics, 09.07.2021 20:10 jj1077348
Formulate the following Linear Programming Problem, solve via Excel and clearly summarize the value of the decision variables, objective function, and slack and surplus variables. A developer has the alternative of building two-, three-, and four-bedroom houses. He wishes to establish the number of each, if any, that will maximize his profit, subject to the following constraints: 1. The total budget for the project cannot exceed $10,070,000. 2. The total number of units must be at least 350 for the venture to be economically feasible. 3. Based on market analysis, the maximum number of two-, three-, and four-bedroom units are 20%, 50%, and 40% of the total number of units, respectively. (Note that the sum exceeds 100%, and this is as it should be for they represent upper bounds to the consumer preferences.) 4. Building costs, including land, architectural and engineering fees, landscaping, etc., are $20,000,$25,000, and $30,000 for the two-, three-, andfour-bedroom units, respectively. 5. Net profits after interest, taxes, etc., are $2000, $3000, and $4000 for the two-, three -, and four-bedroom units, respectively. (Let X1, X2, and X3 be the number of two-, three-, and four-bedroom units, respectively.)
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Formulate the following Linear Programming Problem, solve via Excel and clearly summarize the value...
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