Assignment:
Selecting R&D projects. The Northeast Communications Company (NCC) is contemplating a research and development program encompassing 8 major projects. The company is constrained from embarking on all of the projects by the number of available scientists (40 and the budget available for project expenses ($300000). The following table shows the resource requirements and the estimated profit for each project.
|
Project
|
Expense
(000)
|
Scientists
requked
|
Profit
(000)
|
|
1
|
60
|
7
|
36
|
|
2
|
110
|
9
|
82
|
|
3
|
53
|
8
|
29
|
|
4
|
47
|
4
|
16
|
|
5
|
92
|
7
|
56
|
|
6
|
85
|
6
|
61
|
|
7
|
73
|
8
|
48
|
|
8
|
65
|
5
|
41
|
a. What is the maximum profit, and which projects should be selected?
b. Suppose that management determines that projects 2 and 5 are mutually exclusive. What is the revised project list and maximum profit?
c. Suppose management also decides to undertake at least two of the projects involving consumer products (5.6 7 8) What is the revised project list and maximum profit?