How many units of each type of toys should be stocked

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Assignment 1: Toys R' Us sells two types of toys, Barbie house (toy A) and Dizzie's condo (toy B). The store owner pays $10 and $12 for each one unit of toy A and B respectively. One unit of toys A yields a profit of $5 while a unit of toys B yields a profit of $6. The store owner estimates that no more than 2000 toys will be sold every month and he does not plan to invest more than $20,000 in inventory of these toys. How many units of each type of toys should be stocked in order to maximize his monthly total profit?

Answer the following:

What is the objective function? Is this a minimization or maximization problem?

Identify the constraints? Is this a non-negativity constraint model?

Graph the problem and identify the regions that hold the feasible region. You can do this by hand or use excel or POM-QM.

What are the vertices of the scenario?

What is the most optimal solution?

What is the optimal value?

Provide all resources used when computing this work. Include all drawings and sketches if any, by hand.

Reference no: EM131998895

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