Store space allocation planning problem
Hiland's TV-Radio Store must determine how many TVs and radios to keep in stock. A TV requires 10 square feet of floor space, whereas a radio requires 4 square feet of floor space; 5000 square feet of floor space is available. A TV sale results in an $80 profit, and a radio earns a profit of $20. The store stocks only TVs and radios. Marketing requirements indicate that at least 60% of all appliances in stock be radios. Finally, a TV ties up $200 in capital, and a radio $50. Hiland wants to have at most $60,000 worth of capital tied up at any time.
a. Formulate the linear programming problem
b. Solve using Excel Solver