Answer to Question #3133 in Quantitative Methods for janet

Question

The warehouse for storing these items has 100,000 square feet of storage space.
The Marketing Department thinks that no more than 60,000 square feet should be devoted to fresh goods, 45,000 to frozen goods, and 70,000 to all the other items.
The accounting department estimates that the storage cost is $5 per square foot for fresh items, $10 per square foot for frozen items, and $1 per square foot for all other items. Company policy limits the storage cost to $1,000,000.
Frozen goods have the highest profit margin at $30 per square foot, followed by fresh items at $20 per square foot, and $10 per square foot for all other items.
Develop a linear program to determine the floor space that should be devoted to each of the three item groups so that total profit margin is maximized.

Answer 1

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