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Linear Programming Modeling to maximize the value of
an apartment developer through the optimal mix of
different types of flats, subject to the area & local law
constraints
OROT Project
Submitted to:
Professor Lakshmikanthan
By:
Project:
Table of Contents
Table of Figures........................................................................................................... 2
Apartment developer.................................................................................................. 3
1.1 Problem Description.......................................................................................... 3
1.2 Findings of Market Study...................................................................................3
1.3 Portfolio Constraints.......................................................................................... 3
1.4 Local law constraints......................................................................................... 4
1.5 Additional information....................................................................................... 4
1.6 Formulation of the model.................................................................................. 4
1.7 Objective Function............................................................................................. 4
1.8 Constraints........................................................................................................ 4
1.9 Additional Precautionary Constraints................................................................5
1.10 Using Excel Solver to obtain the optimum solution.........................................5
Table of Figures
Figure 1 - Solver Constraints....................................................................................... 6
Figure 2: Excel Conditions with solution.....................................................................7
Apartment Developer
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Project:
Apartment developer
1.1 Problem Description
Pragati real estate developer is planning a new apartment complex. Three types of units can be built: onebedroom apartments, two-bedroom apartments, and three-bedroom apartments.
Each one-bedroom apartment requires 600 square feet; each two-bedroom apartment requires 800 square
feet; and each three-bedroom apartment requires 1,200 square feet.
The developer has already agreed to lease 13 one-bedroom units and 21 two-bedroom units to a local
rental agency that is a silent partner in this endeavor.
The developer wants to maximize the rent collection from his apartment.
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Project:
1.8 Constraints
Floors<=8 (N), Apartment to Floor Ratio<=12 (O) ... (7)
(TS) <= 67000 .. (8)
Apartment Developer
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Apartment Developer
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Apartment Developer
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Apartment Developer
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