(15%) The sales manager for an electronics retailer is trying to determine the sales mix
Question: Question 3: (15%)
The sales manager for an electronics retailer is trying to determine the sales mix that maximises the profit for one of its product lines. This product line is sold in three levels of content: Basic, Medium and High, which sell for £90, £140 and £190 respectively. The different levels of content of the product use the following inputs:
Product | Basic | Medium | High | Max. Available |
Direct Material | 5 units | 9 units | 15 units | 40,000 units |
Labour | 2 ½ hours | 4 hours | 5.5 hours | 17,000 hours |
Packaging | 2 units | 4 units | 5 units | 16,000 units |
Other materials | 1 ½ units | 2 ¼ units | 2 units | 10,000 units |
The costs for the inputs are £15 per hour for Labour and £5, £2 and £1 per unit for Direct Material, Packaging and Other Materials, respectively.
Formulate this problem as a linear program and use Excel’s Solver to arrive at a solution. Write a short report describing your procedure, justify your formulation and give a recommendation to the firm.
Price: $2.99
Solution: The solution consists of 4 pages
Deliverables: Word Document![](/images/msword.png)
Deliverables: Word Document
![](/images/msword.png)