Sales on these products depends on advertising

Assignment Help Operation Management

Reference no: EM132098020

Blue Ridge Hot Tubs makes four kinds of Hot Tubs: (1) Aqua Spa, (2) Hydro Lux, (3) Eco Spa and (4) Ultra Spa. The Selling price, variable cost, pumps, labor hours and feet of tubing required are given below. Aqua Spa, Hydro Lux, Eco Spa, Ultra Spa Selling Price per unit Aqua Spa$500, HydroLux $450, Eco Spa $600, Ultra Spa $1000 Variable cost per unit Aqua Spa$150 Hydrolux $200, Eco Spa $400, Ultra Spa $450. Pumps required per unit Aqua Spa 1, HydroLux 1, Eco Spa 2, Ultra Spa 3 Labor Hours Required Aqua Spa 9, HydroLux 6, Eco Spa 12, Ultra Spa 15 Feet of Tubing Required Aqua Spa 12, HydroLux 16, Eco Spa 20, Ultra Spa 25. Blue Ridge has 1,000 pumps available, 10,000 hours of labor and 20,000 feet of tubing. The manager at Blue Ridge also have $100,000 available for promotion and advertising. He knows that sales on these products depends on advertising and the more advertisement the higher the sales. The Business Analytics division has given him the following information. Tub: Aqua Spa: initial sales = 50, sales increase for every dollar spent = $2.00 Tub: Hydro Lux: initial sales = 60, sales increase for every dollar spent = $3.00 Tub: Eco Spa: initial sales = 10, sales increase for every dollar spent = $10.00 Tub: Ultra Spa: initial sales = 30, sales increase for every dollar spent = $8.00 Formulate as LP, setup and solve the problem in Excel solver. Please clearly specify your decision variables and define them properly.

Reference no: EM132098020

Questions Cloud

How are the five management functions currently applied : In this first-time journal assignment, go to Section 1.1 of your text, and watch The Five Functions of Managers video on the five management functions.

How you will address jim recent performance issues : Explain how you will address Jim's recent performance issues. Suggest both constructive and positive feedback designed so that Jim will leave motivated.

Critical thinking is one of many vital skills : Critical thinking is one of many vital skills that learners must develop in order to successfully examine research,

Comparison of current organizational practices : relevant to the issue Comparison of current organizational practices with best practices from the literature Recommendation and rationale.

Sales on these products depends on advertising : He knows that sales on these products depends on advertising and the more advertisement the higher the sales.

Choosing your strategic goals : Present your insights on "Choosing Your Strategic Goals" with particular emphasis on the characteristics of Strategic Goals,

Japanese-controlled organizational structure : Another key problem was the centralized, Japanese-controlled organizational structure. Toyota had become too bureaucratic, too centralized,

External stakeholders and internal culture : Consider the vision articulated by Toyota and its alignment with the company’s image with external stakeholders and the internal culture.

Discuss the role of mood and emotion in negotiation process : Discuss the role of mood and emotion in negotiation process, and examine the effects of positive and negative emotions in negotiation.

User Account

All Pages