You have now become an expert in the use of goal and integer programming. Consider now how you would creatively apply an integer goal programming model to this problem setting. You are asked here to provide a conceptual or written formulation rather than a mathematical formulation.
a. Please describe several economic or "hard" constraints that you would include in your model.
b.Please describe several goal or "soft" constraints that you would include in your model.
c.Please describe how you would prioritize and/or relative weight the goals you have described in b.
a) Please describe several economic or "hard" constraints that you would include in your model.
The model calculates the maximum profits that can be made from this establishment. One of the constraints chosen is that the level of sales must be such that Fixed costs are covered. This is to ensure that the sales is above the breakeven point.
The maximum units of a particular item that can be sold must be less than the projected sales for that unit.
x j denote the number of units of item j to be sold.
vj denote the variable cost of item j
Pj denote the price of item j
F= fixed cost
j=1,2,3,4,5 =Sandwich, Soft drink, Baked potato, Tea , Salad bar
We have to maximize the total contribution from the sale of all the 5 items, , Soft drink, Baked potato, Tea , Salad bar.
x j denote the number of units of item j sold
Contribution from each unit of j sold = (Pj-vj ...
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