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A northern hardware company is studying a plan to open a new distribution center in southeast. The company plans to rent a warehouse and an
A northern hardware company is studying a plan to open a new distribution center in southeast. The company plans to rent a warehouse and an adjacent office and distribute its main products to the local dealers. The company has decided to initially start with four of its main products: Pressure washers, Go karts, Generators, and Water pumps. The table below describes how much each of the products will cost the company including transportation costs: Item Cost in Dollars Pressure washer Gokart Generator Case of Water Pumps Table : Costs of products in dollars The company has set aside a purchasing monthly budget of $ for the new location. The selling prices per unit for each item are given in the table below: Item Selling Price in Dollars Pressure washer Gokart Generator Water pump Table : Revenues of products in dollars Other than the budget, another of the companys concern is the available space in the warehouse. The warehouse has shelves, and each shelf is ft long and ft wide. Pressure washers and generators each are stored on ft by ft pallets whereas each Go Kart is stored on an ft by ft pallet. Furthermore, a ft by ft pallet is used to store four cases of water pumps For promoting its brand products, the companys marketing department has decided to allocate at least of its inventory to pressure washers and Go Karts and sell at least twice as many generators as water pumps. Perform a monthly analysis using a linear programming model to maximize the company's net profit. Complete the following in a Word document and in an Excel workbook or R Submit both the Word document and the Excel workbook or R script file as attachments. In a Word document, write the mathematical formulation of the problem. Set up the linear programming formulation in an Excel workbook or R Use the Excel Solver or R to solve the problem, and generate a sensitivity report.
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