Moroney’s Cycles sells, repairs, and customizes motorcycles. They stock Harley Davidson, Yamaha Custom, and also have a limited number of KTM Motocross Bikes available for sale. The average Harley costs $8,000, a Yamaha Custom costs $6,000, and a KTM costs $3000. They sell Harleys on average for $10,000, Yamaha Customs for $7500, and KTMs for $3700. The fleet manager has $50,000 this month to bring in new bikes. Based on past sales and the shop’s primary clients, the fleet manager wants to stock at least twice as many Harleys as the other two combined. The main showroom has room for 20 new bikes this month. Each bike must have a service, a maintenance check, and a road test. This takes 8 hours for a Harley, 10 hours for a Yamaha Custom, and 7 hours for a KTM. The service manager estimates that his employees have 125 hours available this month.
Formulate this problem as a Linear Program in standard form.
Solve using Excel Solver and answer the following questions.
1. What is the breakdown of Harleys, Yamahas, and KTMs that should be bought and sold this month?
2. Should Moroney’s try to increase the budget for purchasing bikes, increase space to stock bikes, or increase labor hours for service and testing? Why?
3. If Moroney’s stocked a cheaper motocross bike for $1750 that sold for $3000, would this affect the original solution?
4. Is it worth hiring an additional mechanic for 20 hours at $7 per hour? Why or why not?