Chapter 4, Problem 55P

a)

Summary Introduction

To determine: The number of units of each product should the company stock to maximize its value.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

b)

Summary Introduction

To determine: The extra value gained for the extra 2,500 square feet of floor space and to identify the value from 5,000 .extra square feet is twice the value obtained from 2,500 square feet.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.