Hiland Appliance must determine how many TVs and DVD players to stock. It costs Hiland $300 to
Question:
Hiland Appliance must determine how many TVs and DVD players to stock. It costs Hiland $300 to purchase a TV and $200 to purchase a DVD player. ATV requires 3 square yards of storage space, and a DVD player requires 1 square yard. The sale of a TV earns Hiland a profit of $150, and each DVD player sale earns a profit of $100. Hiland has set the following goals (listed in order of importance):
■ Goal 1: A maximum of $20,000 can be spent on purchasing TVs and DVD players.
■ Goal 2: Highland should earn at least $11,000 profit from the sale of TVs and DVD players.
■ Goal 3: TVs and DVD players should not use up more than 200 square yards of storage space.
Use a goal programming model to determine how many TVs and DVD players Hiland should order.
How can you modify the model if Hiland’s second goal is to have a profit of exactly $11,000?
Step by Step Answer:
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright