RSports 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. 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. RSports would like you, the operations manager to work out the space allocation in order to maximise the profit.
RSports 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.
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.
RSports would like you, the operations manager to work out the space allocation in order to maximise the profit.
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