Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult Long Trail, the adult

A large sporting goods store is placing an order for bicycles with its supplier. Four models can be ordered: the adult Long Trail, the adult Cityscape, the girl's Sea Sprite, and the boy's Trail Blazer. It is assumed that every bike ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. The LP model should maximize profit. There are several conditions that the store needs to worry about. One of these is space to hold the inventory. An adult's bike needs two feet, but a child's bike needs only one foot. The store has 500 feet of space. There are 1200 hours of assembly time available. The child's bike need 4 hours of assembly time; the Long Trail needs 5 hours and the Cityscape needs 6 hours. The store would like to place an order for at least 275 bikes.

A. Solve your model using Excel Solver. Be sure to save your Answer and Sensitivity Reports.

B. How many of each kind of bike should be ordered and what will the profit be?

C. What would the profit be if the store had 100 more feet of storage space?

D. If the profit on the Cityscape increases to $35, will any of the Cityscape bikes be ordered?

E. If we require 5 more bikes in inventory, what will happen to the value of the optimal solution? Why?

F. Which resource should the company work to increase, inventory space or assembly time?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What The Numbers Mean

Authors: David Marshall, Wayne William McManus, Daniel Viele

7th Edition

0073011215, 9780073011219

More Books

Students also viewed these Accounting questions

Question

=+Does it make you feel cool?

Answered: 1 week ago