Integer Programming Problem
Solve the integer programming model for the below problem. For this problem, solve the integer programming model by using QM for Windows.
Using QM for Windows, you can capture the results and a graph in one of two ways:
- By doing a "Print Screen," you capture the screen image. You can now copy directly to Word (or to Paint, and then to Word).
- Or you can save data from QM for Windows as an HTML file. You can only save data one window at a time. Highlight the QM for Windows output window you want to save and select Save as HTML. You can then edit the HTML file in Word to your liking, or you can copy it directly to Word.
If you use QM for Windows, please include the results screen and the Graph in the Word document you create. Include the model formulation or a window showing the constraints. Save the resulting file as a Word file.
Include the model formulation or a window showing the constraints. Save the resulting file as a Word file. Be sure to select the "Integer and Mixed Integer Programming" module, if using QM for Windows.
Problem:
A lady sold her business for $500,000 and wants to invest in condominiums units (which she intends to rent) and land (which she will lease to a farmer). She estimates that she will receive an annual return of $8,000 for each condominium and $6,000 for each acre of land. A condominium unit costs $70,000 $30,000 per acre. A condominium will cost her $1,000 per unit, an acre of land will cost $2,000 for maintenance and upkeep, and $14,000 has been budgeted for these annual expenses. She wants to know how much to invest in condominiums and land to maximize her annual return.
A) Formulate a mixed integer programming model for this problem
B) Solve this model by using a computer