Land Development Problem Lab 303. Development Problem A ten-acre slum in Riyadh City has to be cleared Two housing plans are to be considered: – low-income.

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Presentation transcript:

Land Development Problem Lab 303

Development Problem A ten-acre slum in Riyadh City has to be cleared Two housing plans are to be considered: – low-income housing (Addakil AL-Mahdood) – middle-income housing 20 and 15 units per acre respectively

Development Problem unit costs of low and middle-income housing are SAR 13,000 and SAR 18,000 The lower and upper limits set by the officials on the number of low income housing units are 60 and 100 middle income housing units must lie between 30 and 70

Development Problem combined maximum market potential is estimated to be 150 total mortgage committed to the renewal plan is not to exceed SAR 2 million it was suggested that the number of low- income units be at least 50 units greater than one-half the number of middle-income housing units

Development Problem Formulation

Development Problem

Reformulate if the objective is to maximize number of houses constructed