Selecting Projects. The Texas Electronics Company (TEC) is contemplating a resea

Question

Selecting Projects. The Texas Electronics Company (TEC) is contemplating a research and development program encompassing eight major projects. The company is constrained from embarking on all projects by the number of available scientists (40) and the budget available for projects ($300,000) Following are the resource requirements and the estimated profit for each project: Project Expense ($000) Scientists Required Profit ($000) 60 110 53 47 92 85 73 65 36 82 29 16 56 61 48 41 9 6 6 a What is the maximum profit, and which projects should be selected?

Explanation / Answer

We will have to look at Benefit (profit) to cost ratio for each of the projects to estimate this result.

=0.6

Thus the maximum profit is $213k and the projects involved are: P2,P6,P8 andP3

projects profit expense PROFIT/EXPENSE SCIENTIST PROFIT/SCIENTIST P1 36 60

=0.6

7 =5.14 P2 82 110 =0.74 9 =9.1 P3 29 53 =0.55 8 =3.6 P4 16 47 =0.34 4 =4 P5 56 92 =0.6 7 =8 P6 61 85 =0.72 6 =10.2 P7 48 73 =0.66 8 =6 P8 41 65 =0.63 5 =8.2

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.