Reference no: EM132956879

A truck with the capacity to load 4,000 cubic feet of cargo is available to transport items selected from the following table.

VALUE
A $2,500
B $1,400 850
C $1,600 700
D $900 650
E $1,600 900
F $1,100 600
G $1,500 850

If selected, an item must be shipped in its entirety (i.e.no partial shipments or multiple shipments). Of items A, C, and G - at least two of these items must be selected. If item C is selected, the E cannot be selected. The shipment must include at least five of these items. Which of these items should be selected to maximize the value of the shipment?

SOLUTION: The optimal solution, the value of the shipment, should be $8,100. All decision variables should be 0 or 1. Be sure to use standard LP template and include the formulation in your Excel file.

Formulation:

Formulate this problem by defining decision variables, objective function, and constraints in standard format as specified/demonstrated in videos.

Questions:

a) Which items should be included in the shipment?

b) If the value of item D increased to $1500 - does this change the value of the shipment and the items are included in the shipment? Explain.

Use the standard LP Template

Provide the decision variables, objective and constraints.