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Capital budgeting Description Among 8 projects under consideration we wish
to choose the most profitable ones. Each project
requires a capital investment and a commitment of
skilled personnel. The (discounted) return of each
project is known. The available capital and the
number of skilled personnel are limited. Further explanation of this example: Similar problem: 'Applications of optimization with Xpress-MP', Section 13.6 'Choice of expansion projects' (h6expand.mos)
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capbgt_graph.mos (!****************************************************** Mosel Example Problems ====================== file capbgt.mos ``````````````` TYPE: Capital budgeting DIFFICULTY: 1 FEATURES: simple MIP problem DESCRIPTION: Among 8 projects under consideration we wish to choose the most profitable ones. Each project requires a capital investment and a commitment of skilled personnel. The (discounted) return of each project is known. The available capital and the number of skilled personnel are limited. FURTHER INFO: Similar problem: `Applications of optimization with Xpress-MP', Section 13.6 `Choice of expansion projects'. (c) 2008 Fair Isaac Corporation authors: Y. Colombani & S. Heipcke, Jan. 2001, rev. Sep. 2017 *******************************************************!) model Capbgt uses "mmxprs", "mmsvg" declarations RPROJ = 1..8 ! Range of possible projects CAPAVL = 478 ! Availability of capital PERAVL = 106 ! Availability of skilled personnel CAP: array(RPROJ) of real ! Capital required for project p PER: array(RPROJ) of real ! Personnel required for project p RET: array(RPROJ) of real ! Return from project p x: array(RPROJ) of mpvar ! Variables indicating whether a project ! is chosen end-declarations ! PROJ 1 2 3 4 5 6 7 8 CAP :: [104, 53, 29, 187, 98, 32, 75, 200] PER :: [ 22, 14, 7, 36, 24, 10, 20, 41] RET :: [124, 75, 42, 188, 108, 56, 88, 225] ! Objective: maximize the return MaxReturn:= sum(i in RPROJ) RET(i)*x(i) ! Limit on capital used by all projects LimCap:= sum(i in RPROJ) CAP(i)*x(i) <= CAPAVL ! Limit on personnel used by all projects LimPers:= sum(i in RPROJ) PER(i)*x(i) <= PERAVL ! Variables are 0/1 forall(i in RPROJ) x(i) is_binary ! Solve the problem maximize(MaxReturn) ! Solution printing writeln("Solution:\n Objective: ", getobjval) forall(i in RPROJ) write(" x(", i, "): ", getsol(x(i))) writeln ! Solution drawing cumc:=0.0; cump:=0.0; cumr:=0.0 forall(i in RPROJ | getsol(x(i))>0) do svgaddgroup("P"+i, "Project "+i) svgaddpie(100,100,40,cumc,cumc+CAP(i)/CAPAVL) cumc+=CAP(i)/CAPAVL svgaddpie(200,100,40,cump,cump+PER(i)/PERAVL) cump+=PER(i)/PERAVL svgaddpie(300,100,40,cumr,cumr+RET(i)/getobjval) cumr+=RET(i)/getobjval end-do svgaddgroup("msg", "", SVG_BLACK) svgaddtext(75,25, "Capital use") svgaddtext(175,25, "Personnel use") svgaddtext(275,25, "Profit share") b:=svggetgraphviewbox b.width+=20; b.height:=b.width; b.xmin-=10; b.ymin-=10 svgsetgraphviewbox(b) svgsave("capbgt.svg") svgrefresh svgwaitclose("Close browser window to terminate model execution.", 1) end-model | |||||||||||
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