I was wandering if anyone could check my excel solver data and make sure my constraints are written correctly.
Here's the constraints in text:
The board wants to maximize the expected yearly return, while keeping the average risk factor (weighted per invested euro) below or equal to 6. Hence, this constraint should be written as follows: sum (Rn* (Xn/200) =< 6 (with Rn = Risk factor = R1, R2, .., R5).
Furthermore, the following restrictions are imposed:
• A production facility must be built in each of these cities. The minimum investment to build a production facility is €2 million.
• The investment in the production facility in Berlin must be at least twice as large as the investment in the production facility in Budapest.
• The investment in the production facility in Vienna should not exceed the investment in the production facility in Berlin.
• The combined investment in the production facilities in Vienna and Berlin should not exceed the combined investment in the production facilities in Hamburg and Budapest.
Attached you'll find my spreadsheet.