Question
The Dolls-R-Us Corporation is a large retail chain specializing in dolls and other accessories. It is trying to find out the best mix of products
The Dolls-R-Us Corporation is a large retail chain specializing in dolls and other accessories. It is trying to find out the best mix of products (i.e. the mix that will maximize profits) for a new store it is building in a new shopping mall. It is particularly concerned about a specific line of products based upon the infamous PBS show, The Magic Couch, starring Molly and Lunette. It has an outstanding order of 2000 Molly dolls from the Dolly Company, at a cost of $ 12.00 per doll. It also has an order for 1500 Lunette dolls from the Mattel Corporation, at a cost of $ 15.00 per doll. Finally, it purchases miniature magic couches for $ 20.00 from the Broyhill Corporation. Dolls-R-Us sells the Molly dolls for $ 25.00, the Lunette dolls for $ 20.00 and the couches for $50.00. The PBS licensing agreement specifies that the retailer must purchase a minimum of one couch for every five (5) Molly dolls. Dolls-R-Us estimates that the maximum number of Lunette dolls it can sell is 400. Given that the manager in charge of this line of products has a purchasing budget of $ 75,000, how many of each product should she purchase? This does not need to be answered. The two parts below need to be.
What is her objective function?
(a) Max 13X1 + 5X2 + 30X3
(b) Min 12X1 + 15X2 + 20X3
(c) Max 25X1 + 20X2 + 50X3
(d) Min 12X1 + 15X2 + 20X3 75000
(e) Max X1 + X2 + X3
What is the equation that reflects the constraint imposed by the PBS franchise agreement?
(a) X1 5X3
(b) X1 5X3 0
(c) 5X1 X3
(d) 5X1 X3 0
(e) 0.20X1 X3 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started