SUSS Sports is a major retailer of sportswear and equipment in Singapore. It has just signed a lease with a major shopping mall to be one of the anchor tenants and will occupy a floor area of 7,000 square meter (sqm). According to the regulatory requirement, 2% of the floor area must be set aside for emergency assembly purpose. The store layout has 8 major zones, and the company analyst has provided the information (based on other stores past data) in Figure 1.1 which shows the annual profit contribution for each zone per sqm.

Sports Zone	Profit Contribution per Sqm
Running	45
Water sports	49
Cycling	52
Racket sports	51
Team sports	41
Home gym	44
Winter sports	36
Fitness sports	50

Based on the corporate guidelines, each sports zone requires at least 600sqm of floor space, and none of the sports zone should occupy more than 15% of usable floor space. The Cycling, Home gym, and Fitness sports zones keep some items in inventory (such as bicycles, treadmills, weights) and an equivalent space of 10 to 20% of the floor space allocated to these three sports zones must be set aside for stocking the spares. Administrative office and checkout counters should occupy between 1 to 2% of the usable floor space and the administrative office has to be at least 20% larger than the checkout counters. The management has requested a special zone for ad-hoc sales events and this should occupy not more than 5% of usable floor space and the profit contribution is the average of the profit contribution for all sports zones. SUSS Sports would like you, the operations manager to work out the space allocation in order to maximise the profit.

(a) Develop a linear programming (LP) formulation for the problem. Please limit the answer to within one page.

(b) Conclude how much each zones floor space should be allocated by solving the problem with Excel Solver. Please paste here three screenshots,

(1) The problem worksheet just before clicking the Solver command: after developing the Excel Solver model, press Ctrl + ~ (tilde) to show formulas in cells, and then take a screenshot with row and column headings;

(2) The Solver Parameters dialog just before clicking Solve; and

(3) The Answer Report and Sensitivity Report created by the Solver. Please limit the answer to within three pages.