USE EXCEL

DATA

Department Investment/sf Risk as a % of $ invested Minimum sf Maximum sf Expected Profit per sf Electronics 100 24 7000 30000 13.00 Furniture 50 12 11000 30000 7.00 Men's Clothing 30 5 1000 5000 3.00 Clothing 600 10 3000 40000 30.00 Jewelry 900 14 1000 12000 20.00 Books 50 2 1000 6000 2.00 Appliances 400 3 12000 40000 13.00

Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 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 $20 million to invest in floor stock. The risk column is a measure of risk associated with investment in floor stock based on past data from other stores and accounts for outdated inventory, pilferage, breakage, and so on. For instance, electronics loses 24% of its total investment, furniture loses 12% of its total investment, and so on. The amount of risk should be no more than 10% of the total investment. Assume that it is not required that the entire available floor space be used. Answer parts a and b below. Click here to view the expected performance data. a. Develop a linear optimization model to maximize profit. Complete the table below to indicate the number of square feet per department, and then give the total profit. Total profit =$ (Type integers or decimals rounded to two decimal places as needed.) b. If the chain obtains another $1 million of investment capital for stock, what would the new solution be? Complete the table below to indicate the number of square feet per department, and then give the total profit. Total profit =$ (Type integers or decimals rounded to two decimal places as needed.) Expected Performance Data Jaycee's department store chain is planning to open a new store. It needs to decide how to allocate the 100,000 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 $20 million to invest in floor stock. The risk column is a measure of risk associated with investment in floor stock based on past data from other stores and accounts for outdated inventory, pilferage, breakage, and so on. For instance, electronics loses 24% of its total investment, furniture loses 12% of its total investment, and so on. The amount of risk should be no more than 10% of the total investment. Assume that it is not required that the entire available floor space be used. Answer parts a and b below. Click here to view the expected performance data. a. Develop a linear optimization model to maximize profit. Complete the table below to indicate the number of square feet per department, and then give the total profit. Total profit =$ (Type integers or decimals rounded to two decimal places as needed.) b. If the chain obtains another $1 million of investment capital for stock, what would the new solution be? Complete the table below to indicate the number of square feet per department, and then give the total profit. Total profit =$ (Type integers or decimals rounded to two decimal places as needed.) Expected Performance Data