LMD Stereo Superstore is planning a special clearance sale. The showroom has 400 square feet of...

 

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LMD Stereo Superstore is planning a special clearance sale. The showroom has 400 square feet of floor space available for displaying the week's two specials, a stereo receiver and a home theater speaker system. Each receiver has a wholesale cost of $120 per unit, requires 2.5 square feet of display space, and generates a net profit of $250. The wholesale cost for the speakers is $90. The speakers require 4.5 square feet of space and results in a net profit of $170. The budget for stocking the two items is $9000. The sales potential for the receiver is considered to be no more than 75 units. Demand for the speakers is expected to be much higher, so the manager wants to stock at least twice as many speaker systems compared to receivers. The store manager wants to decide how many receivers and speakers to stock to maximize net profit. Formulate the linear programming model for this problem, including clearly defining the associated decision variables. LMD Stereo Superstore is planning a special clearance sale. The showroom has 400 square feet of floor space available for displaying the week's two specials, a stereo receiver and a home theater speaker system. Each receiver has a wholesale cost of $120 per unit, requires 2.5 square feet of display space, and generates a net profit of $250. The wholesale cost for the speakers is $90. The speakers require 4.5 square feet of space and results in a net profit of $170. The budget for stocking the two items is $9000. The sales potential for the receiver is considered to be no more than 75 units. Demand for the speakers is expected to be much higher, so the manager wants to stock at least twice as many speaker systems compared to receivers. The store manager wants to decide how many receivers and speakers to stock to maximize net profit. Formulate the linear programming model for this problem, including clearly defining the associated decision variables.

Answer rating: 100% (QA)

SOLUTION Let x be the number of stereo receivers to stock and y be the number of home theater speaker systems to stock The objective function to maxim... View the full answer