Student S1061727

PART A- ALGEBRIC FORMULATIONS

OBJECTIVE: MAXIMIZE SALES REVENUE

MAX 5Y1+ 7Y2+ 9Y3

Decision Variables:

X1 = Number of general advertisings to be spent

X2= Number of food processor advertisings to be spent
X3= Number of toastie machine advertisings to be spent
X4= Number of slow cooker advertisings to be spent

Y1= Number of food processors to be produced

Y2= Number of toastie machines to be produced
Y3= Number of slow cookers to be produced

D1= Predicted demand for food processor

D2= Predicted demand for toastie machines
D3= Predicted demand for slow cooker

Constraints:

D1= 50,000+3x1+5x2+2x3+X4
D2= 20,000+ 4X1+ 2X2+5X3+ 2X4
D3= 25,000+ 2X1+ 1X2+ 2X3+ 4X4

(3x1+5x2+2X3+1X4) * 5 + (4X1+ 2X2+5X3+ 2X4) * 7 + (2X1+ 1X2+ 2X3+ 4X4) * 9 <=

1,000,000

OR 5Y1+ 7Y2+ 9Y3 + x1+x2+x3+x4 <= 1,000,000

Non-negativity Constraints:

X1,X2,X3,X4 >= 0

Y1,Y2,Y3 >= 0

D1,D2, D3 >= 0

Advertising Limit:

X1 <= 30,000
X2 <= 30,000
X3 <= 30,000
X4<= 30,000
Predicted Demand: (may be higher than predicted)

Y1 >= 50,000
Y2 >= 20,000
Y3 >= 25,000

INVESTMENT ACCEPTED:

OBJECTIVE: MAXIMIZE SALES REVENUE

MAX 10Y1+ 15Y2+ 16Y3

Decision Variables:

X1 = Number of general advertisings to be spent

X2= Number of food processor advertisings to be spent
X3= Number of toastie machine advertisings to be spent
X4= Number of slow cooker advertisings to be spent

Y1= Number of food processors to be produced

Y2= Number of toastie machines to be produced
Y3= Number of slow cookers to be produced

D1= Predicted demand for food processor

D2= Predicted demand for toastie machines
D3= Predicted demand for slow cooker

Constraints:

D1= 50,000+3x1+5x2+2x3+X4
D2= 20,000+ 4X1+ 2X2+5X3+ 2X4
D3= 25,000+ 2X1+ 1X2+ 2X3+ 4X4

Budget Constraint:

5Y1+ 7Y2+ 9Y3 + x1+x2+x3+x4 <= 1,500,000

Non-negativity Constraints:

X1,X2,X3,X4 >= 0

Y1,Y2,Y3 >= 0

D1,D2, D3 >= 0
Advertising Limit:

X1 <= 30,000
X2 <= 30,000
X3 <= 30,000
X4<= 30,000

Predicted Demand: (may be higher than expected)

Y1 >= 50,000
Y2 >= 20,000
Y3 >= 25,000
Student S1061727
PART B- ALGEBRIC FORMULATIONS

OBJECTIVE: MAXIMIZE SALES REVENUE

MAX 10Y1+ 15Y2+ 16Y3

Decision variables:

X1= Number of general advertisings to be spent

X2= Number of food processor advertisings to be spent
X3= Number of toastie machine advertisings to be spent
X4= Number of slow cooker advertisings to be spent

Y1= Number of food processors to be produced

Y2= Number of toastie machines to be produced
Y3= Number of slow cookers to be produced

D1= Predicted demand for food processor

D2= Predicted demand for toastie machines
D3= Predicted demand for slow cooker

B1= Binary variable for general advertising

B2=Binary variable for food processor advertising
B3= Binary variable for toastie machine advertising
B4= Binary variable for slow cooker advertising

Constraints:

D1= 50,000+ 3X1+ 5X2+ 2X3+ X4

D2= 20,000+ 4X1+ 2X2+5X3+ 2X4
D3= 25,000+ 2X1+ 1X2+ 2X3+ 4X4

1- budget constraint:

5Y1+7Y2+9Y3+ X1+X2+X3+X4 <= 1,000,000 (total spent before fixed costs)

X2+X3+X4= (1000 * B1+X1) + (10,000 * B2 + X2) + (1000 * B3+ X3) + (1000 * B4+ X4)
(total spent after fixed costs)

X1+X2+X3+X4= (1000*B1+X1)+(10,000*B2+X2)+(1000*B3+X3)+(1000*B4+X4) + 5Y1+

7Y2+ 9Y3 <= 1000,000

Non-negativity Constraints:
X1,X2,X3,X4 >= 0
Y1,Y2,Y3>=0
D1,D2,D3>= 0
Max Spending for Advertising:

X1<= 30,000
X2<= 30,000
X3<= 30,000
X4<= 30,000

Linking constraints:

X1<=30,000* B1
X2<= 30,000* B2
X3<= 30,000* B3
X4 <= 30,000 * B4

Y2>= 20,000 – MINIMUM PRODUCTION FOR TOASTIE MACHINE

Y3>= 250,000- MINIMUM PRODUCTION FOR SLOW COOKER

X1= (X1+x2+x3+x4) * (25/100)

Binary Constraints:

B1= 0, 1
B2= 0,1
B3= 0,1
B4= 0,1