EDUCATION

The power of an integer programming approach—and more particularly a 0,1 programming approach—to resource allocation problems is not widely appreciated. Recent developments in mathematical programming and in problem formulation enable decision makers to deal explicitly with the special conditions which characterize real world problems in capital budgeting, scheduling, and facilities planning. In this paper, somewhat tutorial in nature, we seek to demonstrate formulation and solution of an equipment selection resource allocation problem with several special conditions. The problem can be solved on any reasonably equipped computer system. Sensitivity studies are also performed and discussed.