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Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the 1 0 0 , 0 0
Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the square feet of available floor space among seven departments. The accompanying data includes the expected performance of each department per month, in terms of square feet sf The company has gathered $ million to invest in floor stock. The risk column is a measure of risk associated with investment in floor stock based on past data from other stores and accounts for outdated inventory, pilferage, breakage, and so on For instance, electronics loses of its total investment, furniture loses of its total investment, and so on The amount of risk should be no more than of the total investment. Assume that it is not required that the entire available floor space be used. Answer parts a and below.
Click here to view the expected performance data.
Expected Performance Data
tableDepartmentInvestmentsftableRisk as a of $ investedMinimum sfMaximum sftableExpected Profitper sfElectronics$$
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