Highland Appliance must determine how many color TVs and VCRS should be stocked. It costs Highland...

 

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Highland Appliance must determine how many color TVs and VCRS should be stocked. It costs Highland $300 to purchase a TV and $200 to purchase a VCR. A TV requires 3 square yards of storage space, and a VCR requires 1 square yard. A TV will bring $150 in profit, a VCR $100. Highland has set the following goals (in order of importance): • Goal 1: We have $20,000 to buy TVs and VCR's • Goal 2: We need at least $11,000 in profit • Goal 3: We have no more than 200 square yards of storage space. First, formulate a non preemptive goal program that makes the penalty for profit 10 times that of the other two goals, and solve with EXCEL SOLVER or LINGO. Then make them all equal and re-solve (using EXCEL SOLVER or LINGO). Secondly, write a preemptive goal program and solve it. Highland Appliance must determine how many color TVs and VCRS should be stocked. It costs Highland $300 to purchase a TV and $200 to purchase a VCR. A TV requires 3 square yards of storage space, and a VCR requires 1 square yard. A TV will bring $150 in profit, a VCR $100. Highland has set the following goals (in order of importance): • Goal 1: We have $20,000 to buy TVs and VCR's • Goal 2: We need at least $11,000 in profit • Goal 3: We have no more than 200 square yards of storage space. First, formulate a non preemptive goal program that makes the penalty for profit 10 times that of the other two goals, and solve with EXCEL SOLVER or LINGO. Then make them all equal and re-solve (using EXCEL SOLVER or LINGO). Secondly, write a preemptive goal program and solve it.