A retail store in Makkah, receives shipments of a particular product from Jeddah and Taif. Let X be units of product received from Jeddah and Y be units of product received from Taif. a. Write an expression for the total units of product received by the retail store in Makkah. b. Shipments from Jeddah cost $0.20 per unit, and shipments from Taif cost $0.25 per unit. Develop an objective function representing the total cost of shipments to Makkah. c. Assuming the monthly demand at the retail store is 5000 units, develop a constraint that requires 5000 units to be shipped to Makkah. d. No more than 4000 units can be shipped from Jeddah and no more than 3000 units can be shipped from Taif in a month. Develop constraints to model this situation. e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at the Makkah retail store at minimum cost.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.14P
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A retail store in Makkah, receives shipments of a particular product from Jeddah and Taif. Let X be units of product received from Jeddah and Y be units of product received from Taif.
a. Write an expression for the total units of product received by the retail store in Makkah.

b. Shipments from Jeddah cost $0.20 per unit, and shipments from Taif cost $0.25 per unit. Develop an objective function representing the total cost of shipments to Makkah.
c. Assuming the monthly demand at the retail store is 5000 units, develop a constraint that requires 5000 units to be shipped to Makkah.

d. No more than 4000 units can be shipped from Jeddah and no more than 3000 units can be shipped from Taif in a month. Develop constraints to model this situation.
e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at the Makkah retail store at minimum cost.

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