Example Problem Solution

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The following example problem demonstrates the model formulation and solution of a total integer programming problem.

The Problem Statement

A textbook publishing company has developed two new sales regions and is planning to transfer some of its existing sales force into these two regions . The company has 10 salespeople available for the transfer. Because of the different geographic configurations and the location of schools in each region, the average annual expenses for a salesperson differ in the two regions; the average is $10,000 per salesperson in region 1 and $7,000 per salesperson in region 2. The total annual expense budget for the new regions is $72,000. It is estimated that a salesperson in region 1 will generate an average of $85,000 in sales each year and a salesperson in region 2 will generate $60,000 annually in sales. The company wants to know how many salespeople to transfer into each region to maximize increased sales.

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Formulate this problem and solve it by using QM for Windows.

Solution

Step 1: Formulate the Integer Programming Model

Step 2: Solve the Model Using QM for Windows