CellMall, a cellphone company located in Vanderbijlpark, is planning to sell two new models of cellphones. They
Question:
CellMall, a cellphone company located in Vanderbijlpark, is planning to sell two new models of cellphones. They have acquired the Nokia-N12 at R 1500 each and they plan to sell them at R2999 each. The Samsung-S99 can be acquired at R 3000 each and sold at a profit of R2000 each. Their total budget for purchasing is R 1 500 000 per month.
Storage costs are estimated to be R10 each per month for Nokia-N12 and R 15 each per month for Samsung-S99. The storage budget is R 25 000 per month.
Suppliers are capable of supplying Nokia-N12 in lot sizes of 150 units, with a maximum of 10 lots per month. They can also supply SumSang-S99 in lot sizes of 200 units with a maximum of 8 lots per month. CellMall must order at least one lot per month.
a) Formulate the LP problem (5)
b) Use Ms. Excel Solver to find the maximum profit that the company can make from the sale of their cell phones, taking into consideration all the constraints. (20)
c) Use the ISO-profit line method to find the optimum solution (15)
d) Use the corner-point method to find the maximum profit. (10)
Graphs for c) can be drawn by hand and either scanned or a picture taken
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby