Question: A renowned electronics retailer is stocking up on smart devices with its supplier. Four innovative models are available for ordering: the Smart Home Hub, the
A renowned electronics retailer is stocking up on smart devices with its supplier. Four innovative models
are available for ordering: the Smart Home Hub, the Portable Speaker, the Wearable Fitness Tracker, and
the Virtual Reality Headset. It is anticipated that every product ordered will find a happy buyer, with
profits of $ $ $ and $ respectively. However, the retailer must navigate through several
considerations. Among these, space constraints for storing inventory are paramount. The Smart Home
Hub requires two square feet of storage, while the Wearable Fitness Tracker requires only one square
foot. Thankfully, the retailer has a total of square feet available. Additionally, there's the matter of
assembly time. With hours at their disposal, the assembly team can work diligently. The Wearable
Fitness Tracker necessitates hours of assembly time, while the Smart Home Hub requires hours, and
the Portable Speaker demands hours. Despite these constraints, the retailer is eager to fulfill the needs
of its techsavvy customers. They aim to place an order for no less than smart devices to keep up
with the everevolving demand. The objective of the company is to maximize profit.
a Developed and write a mathematical model by identifying suitable decision variables,
objective function constraints etc.
b Solve your model with LINGO and provide your answer on how many of each kind of
bike should be ordered by store, and what the profit will be
c What would the profit be if the store had more feet of storage space? Explain your
answer with reason.
d Which resource should the company work to increase and how much ie inventory space
or assembly time to get more profits? How you selected the answer, explain.
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