Case Study: Multi-Project Resource Allocation in an Engineering Firm
Scenario:
An engineering consulting firm is simultaneously working on 10 different projects P1 through P10. The firm has limited human resource hours available across 4 skill areas: Software Engineering, Data Analytics, Electrical Design, Project Management.
Each project requires a specific number of hours from each skill area, and the total hours available in each area is limited. Each project provides a different profit when completed. The objective is to maximize total profit while respecting the firm’s resource constraints.
Data:
Project
Profit ($k)
Software (hrs)
Data Analytics (hrs)
Electrical (hrs)
Management (hrs)
P1
120
150
100
80
40
P2
90
100
120
50
30
P3
130
200
80
100
60
P4
110
120
100
60
50
P5
95
100
70
70
35
P6
150
250
110
90
70
P7
80
90
60
40
25
P8
140
200
150
120
60
P9
105
110
90
55
40
P10
100
130
100
75
45
Total Available Weekly Resource Hours:
Software: 1000 hours
Data Analytics: 800 hours
Electrical Design: 700 hours
Project Management: 400 hours
Determine which projects to execute (fully or partially) based on available resources and profitability. Formulate the Integer Linear Programming model.
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