The Inner-city Wallpaper Store is a large retail distributor of the Supertrex brand of vinyl wallcoverings. Inner-city w

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The Inner City Wallpaper Store Is A Large Retail Distributor Of The Supertrex Brand Of Vinyl Wallcoverings Inner City W 1 (161.32 KiB) Viewed 14 times

The Inner-city Wallpaper Store is a large retail distributor of the Supertrex brand of vinyl wallcoverings. Inner-city will enhance its citywide image in Miami if it can outsell other local stores in total number of rolls of Supertrex next year (i.e. maximise the number of Supertrex sold). It is able to estimate the demand function as follows: Number of rolls of Supertrex sold = 20 x Rands spent on advertising + 6.8 x Rands spent on in-store displays + 12 * Rands invested in on-hand wallpaper inventory - 65 000 * Percentage markup taken above wholesale cost of a roll The store budgets a total of R17 000 for advertising, in-store displays, and on-hand inventory of Supertrex for next year. It decides it must spend at least R3 000 on advertising; in addition, at least 5% of the amount invested in on-hand inventory should be devoted to displays. Markups on Supertrex seen at other local stores range from 20% to 45%. Inner- city decides that its markup had best be in this range as well. (a) Formulate (that is, setting up the objective function and constraints) Inner-city Wallpaper Store problem using LP. (14) (b) Use your formulation in part (a) to form a Microsoft Excel Solver spreadsheet to solve the LP problem. (47)