Poor inventory management at the local warehouse for Furniture City has led to overstocking of many items
Question:
Poor inventory management at the local warehouse for Furniture City has led to overstocking of many items and frequent shortages of some others. To begin to rectify this situation, the 20 most popular kitchen sets in Furniture City’s kitchen department have just been identified. These kitchen sets are composed of up to eight features in a variety of styles, so each of these styles should be well stocked in the warehouse. However, the limited amount of warehouse space allocated to the kitchen department means that some difficult stocking decisions need to be made. After gathering the relevant data for the 20 kitchen sets, BIP now needs to be applied to determine how many of each feature and style Furniture City should stock in the local warehouse under three different scenarios.
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a We want to maximize the total number of kitchen sets so each of the 20 kitchen sets becomes a decision variable But the kitchen sets are not our only decision variables Because we assume that any pa...View the full answer
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