(Network Models & Integer Programming) QM-II Assignment-5 (Group assignment) Submission deadline: 15-Dec-2016, 17:00 hrs. 1. Joe has just now purchased a new SUV for $12,000. The maintenance cost of the vehicle is dependent on its age at the start of every year. To get rid of high maintenance costs associated with an older vehicle, Joe may sell it off and purchase a new vehicle. The resale value depends on the age of the vehicle. The resale value and the annual maintenance cost are tabulated below. The purchase cost of a new vehicle at any point in time is $12,000. Joe’s goal is to minimize the net cost (Purchase price + Maintenance cost – Money received by reselling), incurred in the forthcoming five years. Formulate this problem as a shortest path model and obtain the optimum solution. Age of the SUV (in years) 0 1 2 3 4 5 Annual maintenance cost (in $) 2000 4000 5000 9000 12000 - Resale value (in $) 7000 6000 2000 1000 0 2. The Government of India, with view to develop the economy of the country, has planned to venture on new capital investment projects, by allocating a large portions of its tax revenues. The cabinet asked the various government agencies to come up with a ...
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