Mitchell Enterprises (C)

Read the case and be able to explain the formulations and output in the exhibits. Answer the following:

1. Why do the LP results in Exhibit 5 have no money invested in Project E? What would you do to remedy that situation?
2. Perform an analysis that will enable the Investment Review Committee to agree on a portfolio, given that neither the solution which maximizes 1979 profit (even when adjusted to include Project E) nor the one which maximizes 1979 payout are acceptable. You will need to use and modify the models in Exhibits 2 and 4 to complete this analysis. Use BLP or GAMS to solve any problems that you need.