Dr. Thompson’s sporting goods store is placing an order for scooters with its supplier. Four models can be ordered: the adult Tameka, the adult Christian, the girl's Tamia, and the boy's Max. It is assumed that every scooter ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. Dr. Thompson wants to maximize profit. There are several conditions that the store needs to worry about. One of these is space to hold the inventory. An adult's scooter needs two feet, but boys’ and girls’ scooters need only one foot each. The store has 500 feet of space. There are 1200 hours of assembly time available. The boys and girls scooter need 4 hours of assembly time each; the Tameka needs 5 hours and the Christian needs 6 hours. The store would like to place an order for at least 275 scooters. What would the profit be if the store had 100 more feet of storage space? If the profit on the Christian increases to $35, will any of the Christian bikes be ordered? Over what range of assembly hours is the shadow price applicable?
Dr. Thompson’s sporting goods store is placing an order for scooters with its supplier. Four models can be ordered: the adult Tameka, the adult Christian, the girl's Tamia, and the boy's Max. It is assumed that every scooter ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. Dr. Thompson wants to maximize profit. There are several conditions that the store needs to worry about. One of these is space to hold the inventory. An adult's scooter needs two feet, but boys’ and girls’ scooters need only one foot each. The store has 500 feet of space. There are 1200 hours of assembly time available. The boys and girls scooter need 4 hours of assembly time each; the Tameka needs 5 hours and the Christian needs 6 hours. The store would like to place an order for at least 275 scooters. What would the profit be if the store had 100 more feet of storage space? If the profit on the Christian increases to $35, will any of the Christian bikes be ordered? Over what range of assembly hours is the shadow price applicable?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Dr. Thompson’s sporting goods store is placing an order for scooters with its supplier. Four models can be ordered: the adult Tameka, the adult Christian, the girl's Tamia, and the boy's Max. It is assumed that every scooter ordered will be sold, and their profits, respectively, are 30, 25, 22, and 20. Dr. Thompson wants to maximize profit. There are several conditions that the store needs to worry about. One of these is space to hold the inventory. An adult's scooter needs two feet, but boys’ and girls’ scooters need only one foot each. The store has 500 feet of space. There are 1200 hours of assembly time available. The boys and girls scooter need 4 hours of assembly time each; the Tameka needs 5 hours and the Christian needs 6 hours. The store would like to place an order for at least 275 scooters.
- What would the profit be if the store had 100 more feet of storage space?
- If the profit on the Christian increases to $35, will any of the Christian bikes be ordered?
- Over what range of assembly hours is the shadow price applicable?
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