Amazon Equipment Vendor Exercise An Amazon vendor has 10,000 square feet of warehouse space. The store sells a variety of equipment. Equipment A cost $450 each and require 6 square feet of space; Equipment B cost $350 each and requires 4 square feet of space, and equipment C costs $236 and requires 2 square feet of space. The demand for equipment A is at most 34 units per month. The vendor has $400,000 to spend on various equipment this month. Each Equipment A contributes $235, each Equipment B contributes $170, and each Equipment C contributes $117. The objective is to maximize total contribution. Following the 5 steps of Linear Programming, solve this managerial issue. Interpret the results and write out managerial implications for decision-making for this vendor. Extra Challenge: Interprete sensitivity analysis and explicate the managerial insights from the analysis. Rubric Formulation of LP problem (Objective and constraints) Solution of LP problem using Excel Interpretations and managerial insights Deliverables Formulation of LP problem and rationales for that. Solution of LP problem using Excel. Proper use of functions and notations is essential. Well-written interpretations and managerial insights. The work should be posted on a separate worksheet.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Amazon Equipment Vendor Exercise

An Amazon vendor has 10,000 square feet of warehouse space. The store sells a variety of equipment. Equipment A cost $450 each and require 6 square feet of space; Equipment B cost $350 each and requires 4 square feet of space, and equipment C costs $236 and requires 2 square feet of space. The demand for equipment A is at most 34 units per month. The vendor has $400,000 to spend on various equipment this month. Each Equipment A contributes $235, each Equipment B contributes $170, and each Equipment C contributes $117. The objective is to maximize total contribution. Following the 5 steps of Linear Programming, solve this managerial issue. Interpret the results and write out managerial implications for decision-making for this vendor.

Extra Challenge: Interprete sensitivity analysis and explicate the managerial insights from the analysis.

Rubric

Formulation of LP problem (Objective and constraints)
Solution of LP problem using Excel
Interpretations and managerial insights

Deliverables

Formulation of LP problem and rationales for that.
Solution of LP problem using Excel. Proper use of functions and notations is essential.
Well-written interpretations and managerial insights. The work should be posted on a separate worksheet.

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