Develop a linear optimization model to maximize profit

Assignment Help Engineering Mathematics

Reference no: EM131440126

Question: Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 square feet of available floor space among seven departments. Data on expected performance of each department per month, in terms of square feet (sf), are shown next.

890_page 1.jpg

The company has gathered $20 million to invest in floor stock. The risk column is a measure of risk associated with investment in floor stock based on past data from other stores and accounts for outdated inventory, pilferage, breakage, and so on. For instance, electronics loses 24% of its total investment, furniture loses 12% of its total investment, and so on. The amount of risk should be no more than 10% of the total investment.

a. Develop a linear optimization model to maximize profit.

b. If the chain obtains another $1 million of investment capital for stock, what would the new solution be?

Reference no: EM131440126

Questions Cloud

Would you invest in a socially responsible mutual fund : Would You Invest in a Socially Responsible Mutual Fund? How do you balance your personal beliefs with your desire to make money? Should you worry about this at all?

Pension destruction act-workers benefit protection act : Many employers provide health and or pension benefits to theri employee. For those employers who do provide benefits, they must comply with the following federal laws: Pension Destruction Act; Mental Health Parity and Addiction Equity Act; Older Work..

Provide a definition of organizational learning : Please provide a definition of "organizational learning."There are many, many, differing definitions of OL - and many opinions on precisely how organizations learn (or if they can even learn at all).

The essential functions containted in teh job description : In discrimination in recruitment complaints, statistical evidence often becomes the basis for determining of adverse impact or disparate treatment exists. if you received an applicant complaint of discrimination in the recruitement process, you would..

Develop a linear optimization model to maximize profit : Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 square feet of available floor space among seven departments.

Explain types of inferential statistics that might be best : Analyze the types of inferential statistics that might be best for analyzing the data, if you were to collect a sample. Analyze the role probability or trend analysis might play in helping address the business problem.

Contracting parties are supposed to anticipate the risk : A previous edition of our text stated that "contracting parties are supposed to anticipate the risk that costs may fluctuate." Should parties be given more flexibility to demand a higher price if costs go up? In what situations? Explain why/why no..

Reviewing an employee attendance report : A hospital administrator is reviewing an employee attendance report. It appears that 92% of the healthcare workers receive the influenza vaccination. Which problem is presented by the data?

Demonstrates mastery conceptualizing the problem : Starting in the spring of 2014, eBay was subjected to a series of security intrusions into its database of user passwords. The breach occurred when hackers compromised some employee login credentials, giving them access to the eBay system. It took..

User Account

All Pages