(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

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