The purchasing manager in Zain Telecommunications Company need to decide on the mix of smartphones to be purchased over the next three months. He needs to calculate the amount of five different smartphone categories.
Category 1 is (Apple-high-end) and cost of a unit is 800 JDs, category 2 is (Apple-budget) cost of a unit is 500 JDs, category 3 is (Samsung-high-end) cost of a unit is 700 JDs, and category 4 is (Samsung-budget) cost of a unit 250 JDs, and category 5 is (other types) cost of a unit 200 JDs
It is expected that they will distribute at least 6000 phones over the next 3 months. According to market analysis, they need at least 2000 units of Apple iPhone but not more than 3000, at least 2500 units of Samsung Smartphones but not more than 3000, and at most 1500 units of other smartphones.
At least 50% of demand on Apple IPhone is on category 1 (Apple-high-end)
At most 40% of demand on Samsung Smartphones is on category 4 (Samsung-budget)
Develop the OR model to minimize the total cost of purchasing the smartphones (develop the model and do not solve it).

Answer rating: 100% (QA)

Here we need to use Linear Programming OR model So let us formulate the model by defining the decisi... View the full answer