Find the optimal solution


A firm plans on building a maximum of 15 new stores in Istanbul. They will build these stores in one of three sizes for each location - a convenience store (open 24 hours), standard store, and an expanded-services store. The convenience 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. Based on experience, the firm has decided to build at least 4 convenience stores. On the avarage, the convenience store nets $2 million annually, and the expanded-services store nets $2.6 million annually. How many of each should they build to maximize revenue? Formulate the problem as an LP and use Excel solver to find the optimal solution. Create the answer and sensivity reports and analyze them.

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Business Management: Find the optimal solution
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