Obviously if the model wants to upgrade the kitchen, it should be done by either the landlord or a subcontractor. As he creates the IP model,

Question

After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door — you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.

the landlord wants to leave the choice of whether to actually upgrade the kitchen up to the optimization algorithm. How should this constraint be written if he uses the following scheme for decision variables?

x1 = contractor works on wood floors x2 = landlord works on wood floors
x3 = contractor works on kitchen tile x4 = contractor works on kitchen tile
x5 = contractor works on back door x6 = contractor works on back door
x7 = contractor works on garage door x8 = contractor works on garage door

A) x3 + x4 ? 1
B) x3 + x4 = 1
C) x3 - x4 ? 1
D) x3 - x4 = 1

Answer 1

Answer: A