Set up and solve problem #1 (Mall leases) from LP hwk A in the Excel file. Make sure you have the correct formulation.

. Simon Property Group has invested in the development of an indoor shopping mall in the Houston suburbs. It must now plan for the size and quantity of stores to lease space to in the mall. Smaller stores having 2,500 square feet are more profitable, but large anchor stores which take up 250,000 square feet are necessary to attract sufficient volumes of traffic. Medium-sized stores average around 100,000 square feet. The mall will contain 1 million square feet and Simon Property Group wants at least one large anchor store in the mall. Furthermore, it wants the ratio of medium to large stores to be at least 3 to 1.

Leasing rates are anticipated to be $265,000, $170,000, and $20,000 per year for large, medium, and small stores respectively.

Write the linear programming formulation to determine the numbers of each size of store that Simon should lease to in order to maximize leasing revenues.