A method of determining the allocations in a business operation to maximizeprofit includes: collecting profit data for a plurality of classes in thebusiness operation, where each class includes an allocation having a costfunction and each allocation belongs to the group consisting of physicalallocations and economic allocations; determining profit functions for theallocations from the profit data (2); formulating a Multiple Choice KnapsackProblem to maximize profit from the profit functions, the cost functions, andcost constraint; and solving the Multiple Choice Knapsack Problem to determinevalues for the allocations.
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