Danson furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75000 to invest in shelves this week, and the warehouse has 18000 cubic feet available for storage. Profit for each big shelf is $300 and for each medium shelf is $150. What is the optimal purchase quantity of each shelf and what is the maximum profit?
Here is the algebraic formulation
B - Number of big shelves produced and sold
M - Number of medium shelves produced and sold
Excel file contains formulation and optimal solution of linear programming problem. Excel solver is used.