Explore BrainMass

Operations Research and Linear Programming

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

I need help finding the constraints for this problem as well as solutions to part b and c.

Wal-Mart, a discount store chain, is planning to build a new store in Rock Springs, Maryland.. The parcel of land the company owns is large enough to accommodate a store with 140,000 square feet of floor space. Based on marketing and demographic surveys of the area and historical data from its other stores, Wal-Mart estimates its annual profit contribution per square foot for each of the store's departments to be as shown in the following table.

(see chart in attached file)

Each department must have at least 15,000 ft2 of floor space and no department can have more than 20% of the total retail floor space. Men's women's and children's clothing plus housewares keep all their stock on the retail floor; however, toys, electronics, and auto supplies keep some items (bicycles, televisions, tires, etc.) in inventory. Thus, 10% of the total retail floor space devoted to these three departments must be set aside outside the retail area for stocking inventory.

a. Formulate a linear programming model that can be used to determine the floor space that should be devoted to each department in order to maximize profit contribution.

b. Determine the optimal floor space allocation and the resulting total contribution to profit.

c. Wal-Mart is considering the purchase of a parcel of land adjacent to this planned building site. The cost of the parcel is $190,000 and it would enable Wal-Mart to increase the size of the store to 160,000 ft2. Company policy requires that acquisitions of new land for expansion be offset by additional contribution to profit within five years. Historically, however, profit contributions decline in all departments by 10% if a store size increases past 150,000 ft2 (slower stock turnover, increased inventory costs, etc). Provide a justified recommendation with respect to this expansion option.

© BrainMass Inc. brainmass.com October 16, 2018, 6:10 pm ad1c9bdddf


Solution Summary

This solution is comprised of a detailed explanation to formulate a linear programming model that can be used to determine the floor space that should be devoted to each department in order to maximize profit contribution.

Similar Posting

Operations Research: Linear Programming for Optimization

2. Blending Problem (20%): Determine the optimal amounts of three ingredients to include in an animal feed mix. The final product must satisfy several nutrient requirements. The possible ingredients, the nutrient contents (as proportion of the ingredient), and the unit costs are shown in the table. The mixture must meet the following restrictions:

Calcium: at least 0.8% but not more than 1.2%
Protein: at least 22%
Fiber: at most 5%
The problem is to find the composition of the feed mix that satisfies these constraints while minimizing the cost.

Ingredient Calcium Protein Fiber Unit Cost (cents/kg)
Limestone 0.38 0.0 0.0 10.0
Corn 0.001 0.09 0.02 30.5
Soybean 0.002 0.50 0.08 90.0

Formulate this problem into a LP model.

View Full Posting Details