In: Statistics and Probability
Advance Engineering Corporation (AEC) provides paving and bridge maintenance services. Paving requires 7 hour of labor and 2 tons of material, and bridge maintenance requires 2 hour of labor and 12 tons of material. Currently, 28 hours of labor and 24 tons of material are available. Each Paving contract contributes $50 to profit, and each Bridge Contract contributes $100 to profit. Formulate and solve an integer programing problem to maximize AEC’s profit. (Please solve using branch and bound method)
Decision Variables:
Let,
The number of paving contracts = x1
Number of Bridge Contract = x2
Objective Function:
Here we have to maximize the profit
Profit from a paving contract = $50
Profit from a Bridge maintenance Contract = $100
MAX 50*x1 + 100*x2
Constraints:
We cant use labor or materials more than availability.
Paving requires 7 hour of labor and 2 tons of material, and bridge maintenance requires 2 hour of labor and 12 tons of material.
Available labor = 28 hours
Available material = 24 tons
7*x1 + 2*x2 <= 28
2*x1 + 12*x2 <= 24
Number of paving and bridge maintenance cant be negative.
x1, x2 >= 0
A contract must be completed (and hence not fractional)
x1, x2 = integer
Putting in Excel:
Solver Parameters:
Optimal Solution:
Number of Paving = 3
Number of Bridge Maintenance = 1
Profit = $250
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