Essay Data Optimization using Solver Real Estate Development – Management Assignment Help

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Data Optimization using SolverReal Estate Development

A real estate developer is planning to build an apartment complex for graduate students on a parcel of land adjacent to a major university. Four types of apartments can be included in the building: studios, and one-, two-, or three-bedroom units. Each studio unit requires 500 square feet; each one-bedroom apartment requires 700 square feet; each two-bedroom apartment requires 890 square feet; and each three-bedroom unit requires 1000 square feet.
The developer wants the building to include no more than 15 one-bedroom units, 22 two-bedroom units, and 10 three-bedroom units. The local zoning ordinances do not allow the developer to build more than 40 units in this location, and they restrict the building to a maximum of 40,000 square feet. The developer has already agreed to lease 5 one-bedroom units and 8 two-bedroom units to a local rental agency that is a “silent partner” in this project. Market data indicate that studios can be rented for $950 per month, one-bedrooms for $1200/month, two-bedrooms for $1400/month, and three-bedrooms for $1800/month.
a) Build an optimization model to determine a plan that maximizes the potential rental income from the building. Clearly indicate the decision variables, the objective function, and the constraints of your model, and any other Solver settings that you declared.
b) What is the optimal solution?
c) If the zoning board allowed the developer to build 8 more units in the apartment complex, how would the total rental income change? Explain how you obtained your answer.
Instructions. Show all your work in a single worksheet. Clearly identify your answers by question number, so that I do not have to guess where to find them in your Excel sheet. To explain your answers, you can type text in cells or text boxes if needed.