The total capital program fund for new project expenditures


The total capital program fund for new project expenditures is $80,000 for Year 1, $100,000 for Year 2, and $110,000 for Year 3, respectively. Formulate and solve the problem as a 0/1 integer programming problem, assuming carryover of unspent funds from one year to the subsequent year till the last year. The carryover is meant to i) keep project(s) already selected in Year 1 according to the original budget, carry over unspent budget from Year 1 to Year 2, and reoptimize the problem with a reduced budget for Year 1, an enlarged budget for Year 2, and original budget for year 3; and ii) Then, keep the projects selected in Years 1 and 2, carry over unspent budget from Year 2 to Year 3, and reoptimize the problem with reduced budgets for Years 1 and 2, and an enlarged budget for Year 3. Since Year 3 is the last year of the programming period, the optimization stops at this point.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: The total capital program fund for new project expenditures
Reference No:- TGS01517941

Expected delivery within 24 Hours