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.
Formulate this problem and solve it by using QM for Windows.
Step 1: Formulate the Integer Programming Model
Step 2: Solve the Model Using QM for Windows