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The LP problem whose output follows determines how many handbags, purses, perfume, and shoes (variables X1,X2, X3, and X4, respectively) a retail store should stock.
The LP problem whose output follows determines how many handbags, purses, perfume, and shoes (variables X1,X2, X3, and X4, respectively) a retail store should stock. The objective function measures profit. It is assumed that every item stocked will be sold. Constraint 1 measures display space in units which has a maximum of 108 units. Constraint 2 measures time to set up the display in minutes where the maximum allowable time is 120 minutes. Constraints 3 and 4 are marketing constraints. The logic for constraint 4 indicates that the sum total of purses, perfume and shoes can be 50 or more. They make $100 for each handbag, $120 for each purse, $150 for each perfume and $125 for each set of shoes. MODEL OUTPUT FROM EXCEL: Original Cell Name Value Final Value $B$17 Z 7475 7475 Adjustable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $A$16 x1 [a]? 100 1E+30 12.5 $B$16 x2 -5.00 120 5.00 1E+30 $C$16 x3 17 150 12.5 25 $D$16 x4 33 [b]? 125 25 5.00 ConstraintsConstraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $E$20 Constraint #1 108 75 108 15.75 8 $E$21 Constraint #2 57 [c]? 120 1E+30 63 $E$22 Constraint #3 25 25 25 33 17 $E$23 Constraint #4 [d]? -25 4 8.5 Use what you know about linear programming to find the values for the four blanks (a, b, c and d) in the linear program computer printout: a ) What is the missing value for [a]? b ) What is the missing value for [b]? C) What is the missing value for [c]? d ) What is the missing value for [d]? e ) What is the value of slack/surplus for constraint #2? f ) How much space will be left unused? g ) How much time will be used? h ) By how much will the second marketing restriction be exceeded? To what value can the profit on handbags drop before the solution would change? By how much can the profits on perfume increase before the solution wouldUse what you know about linear programming to find the values for the four blanks (a, b, c and d) in the linear program computer printout: a ) What is the missing value for [a]? b) What is the missing value for [b]? C) What is the missing value for [c]? d) What is the missing value for [d]? e) What is the value of slack/surplus for constraint #2? f ) How much space will be left unused? g) How much time will be used? h ) By how much will the second marketing restriction be exceeded? To what value can the profit on handbags drop before the solution would change? j) By how much can the profits on perfume increase before the solution would change? K ) By how much can the amount of space decrease before there is a change in the profit? 1) You are offered the chance to obtain more space. The offer is for 15 units and the total price is 1500. What should you do? Explain with calculations
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