The way to maximize the company revenue. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

Question

Tom is a habitual shopper at garage sales. Last Saturday he stopped at one where there were several types of used building materials for sale. At the low prices being asked, Tom knew that he could resell the items in another town for a substantial gain. Four things stood in his way: he could only make one round trip to resell the goods; his pickup truck bed would hold only 1200 pounds; the pickup truck bed could hold at most 80 cubic feet of merchandise; and he had only $190 cash with him. He wants to load his truck with the mix of materials that will yield the greatest profit when he resells them. Formulate (define objective function and constraints) and solve this problem (using excel solver) as a linear program.

Answer 1

Question

Chapter 4, Problem 59P

Summary Introduction

To determine: The way to maximize the company revenue.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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