7 You are trying to create a budget to optimize the use of a portion of your...

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7 You are trying to create a budget to optimize the use of a portion of your disposable income. You have a maximum of $1,500 per month to be allocated to food, shelter, and entertainment. The amount spent on food and shelter combined must not exceed $1,000. The amount spent on shel- ter alone must not exceed $700. Entertainment cannot exceed $300 per month. Each dollar spent on food has a satisfaction value of 2, each dollar spent on shelter has a satisfaction value of 3, and each dollar spent on entertainment has a satisfaction value of 5. Assuming a linear relationship, use the Excel Solver to determine the optimal allocation of your funds.

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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