The imperial flack jacket company currently ships all products out of two factories (a and b) to two government warehouses. because of increasing demand, another factory will have to be built. the company has two possible locations in mind (c or d) and is currently trying to choose between them using the linear programming (lp) transportation method. data on monthly shipping and receiving volumes and per‑unit shipping costs are: factory warehouse 1 warehouse 2 production capacity existing a $2.80 $3.45 2,000 existing b $2.50 $4.10 3,500 proposed c $3.25 $3.10 4,000 proposed d $2.95 $3.55 4,000 min. demand 5,000 4,000 how many decision variables are involved in either lp formulation (i. e., with using either proposed location c or d excluding the non-negativity constraint)?

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.