Reference no: EM132788508
Carretrois is a major operator of grocery stores. Part of their expansion plan involves building as many as 11 new stores in a large city.
They will build these stores according to one of three store concepts for each location - a local store (open 24 hours), standard store, and an expanded- services store.
The local store requires $4.125 million to build and 30 employees to operate. The standard store requires $8.25 million to build and 15 employees to operate. The expanded-services store requires $12.375 million to build and 45 employees to operate.
The corporation can dedicate $82.5 million in construction capital, and 300 employees to staff the stores.
On the average, a local store nets $1.2 million annually, the standard store nets $2 million annually, and the expanded- services store nets $2.6 million annually. Carretrois wants to have at least one of each of the three store concepts built in each city
they serve.
a) Formulate the LP - program for the decision problem
b) How many of each should they build to maximize net profit
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: Carretrois is a major operator of grocery stores. Part of their expansion plan involves building as many as 11 new stores in a large city.
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