How should the available storage space be allocated

Reference no: EM133251348

Question - Kingsville Prescriptive Analysis Case Study

Description - The objective of this assignment is to explore the use spreadsheet application for decision analysis and for solving constrained optimization problems.

Optimization - WebFood is a new company that allows customers to do grocery shopping over the Internet. It carries products that need three different types of care. Fresh items such as fruit, require special handling so that they always look fresh and do not spoil. Frozen items need cool or frozen storage so that they do not warm up. All the other items, including canned goods, paper products, and kitchenware, require minimal special attention and are just stocked on shelves. 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 other items. At the minimum they must use 20,000 sq ft for Fresh, 20,000 for frozen and 20,000 for other type goods. 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 of all other items. Company policy limits the storage cost to $1,000,000. Frozen goods have the highest profit margin at $25 per square foot, followed by fresh items at $20 per square foot, and $15 per square foot from other items. The company wants to find out how much of the 100,000 square feet of storage should be allocated fresh goods, frozen goods and all other goods. They wish to maximize the net profits. Net Profits is computed net of total profits minus total costs. Answer these questions in your answer file

How should the available storage space be allocated for different types of goods?

What is the maximum profit the company can expect by such space allocation?

Which constraints are binding and which ones are not binding?

Submission Instructions -

Introduction: Introduce what optimization and decision analysis problems are. (150 words)

Analysis: Write answers to the optimization problem

Conclusion: Include example problem domains where optimization will be used. Provide at least 100 words of detailed answer.

Reference no: EM133251348

Questions Cloud

Who strictly leans toward confucianism : Where would you classify a follower in an environment that strictly adheres to the Confucianist philosophy? Explain your reasoning

What are some lessons learned within the assessment : What are some "lessons learned" within the assessment that you can apply to your professional practice as a provider

How do you use simple exponential smoothing : 620 321 Rutgers University what would the forecast for the next period be using simple exponential smoothing? How do you use simple exponential smoothing

Describe the formation of modern cruising : HFT 1000 Florida International University Describe the formation of modern cruising, specifying how it began and highlighting the major milestones

How should the available storage space be allocated : How should the available storage space be allocated for different types of goods? Which constraints are binding and which ones are not binding

Do you follow in your own idea of a good life : Do you follow in your own idea of a good life? Why do you follow this principle? How is this seen in your own life? Justify and explain in 6 sentences.

Will the occupancy rate in the two regions increase : Will the occupancy rate in the two regions increase to a point where they become known as tourist destinations in their own right?

Discuss ways in which the subject matter : SE 3613 Harvard University discuss ways in which the subject matter of this article may (or may not) contribute to the overall success of an organization.

Why did you want to ask that particular question : chef like chef Daniel Boulud about advice on your career, what would you ask? Why did you want to ask that particular question above all others

User Account

All Pages