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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)
Scientistst Required
Prolit (000)
1
60
7
36
2
110
9
82
3
5.3
8
29
4
47
16
5
92
56
6
85
61
73
48
65
41
1. What is the maximum profit, and which projects should be selected?
2. Suppose that management determines that projects 2 and 5 are mutually exclusive. What is the revised project list and maximum profit?
3. 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?
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