Question: Metro Telcom Systems develops, sells, and install computer systems. The company has divided its customer base into five regions, and it has 15 representatives who
Metro Telcom Systems develops, sells, and install computer systems. The company has divided its customer base into five regions, and it has 15 representatives who sell and install the companys systems. With its daily expense budget of $65,000, the company wants to allocate salespeople to regions so that they maximize daily sales revenue. However, whereas the sales increase as the number of salespeople allocated to a region increases, they do so at a declining rate, according to the nonlinear formula as follows. = where is the number of salespersons allocated to region . Following are the parameters and for daily sales in each region and the daily expense (including all costs) per representative for each region: Region A B C D E Parameter ($) 16,000 24,000 9,000 12,000 21,000 ($) 8,000 14,000 5,000 6,000 13,000 Daily expense for each region ($) 440 550 240 315 450 (a) Formulate a nonlinear programming model for this problem with integer decision variables. (b) Find the maximal daily sales and the optimal solution point in (a) by using the computer.
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