Business Decision Models Assignment 1 Winter 2012

Pages: 3 (506 words) Published: March 14, 2012
BDM assignment question 2b

With this new requirement of shoe stores equally jewelry stores, a number of results will change in our solution. The additional constraint you need to add is that shoe stores equals jewelry stores. The new optimal solution is the following; two shoe stores, two jewelry stores, three department stores, two bookstores and two clothing stores. This total space will equal 9900 square feet and the total profit is \$1,390,000. This would decrease the total profit by \$20,000 if this additional constraint were added to the problem.

2c

Let J = the number of jewelry stores in the mall, where J is required to be a whole number between 1 and 3.

Let S = the number of shoe stores in the mall, where S is required to be a whole number between 1 and 3.

Let D = the number of department stores in the mall, where D is required to be a whole number between 1 and 3.

Let B = the number of bookstores in the mall, where B is required to be a whole number between 0 and 3.

Let C = the number of clothing stores in the mall, where C is required to be a whole number between 1 and 3.

It would be difficult to formulate the profit maximization from this model because the profit for the stores depends on the amount of stores there are. In this model it is difficult to formulate a way to have different profit amounts for different decision variables. If J=1 it would have a different profit than J=2, as it is simply not multiplied by 2, but it is a different amount. J=1 would be 90, but J=2 would be 160. This makes it difficult to formulate the solution using this model.

2a

Let J1 = 1 if one jewelry store is in the mall
= 0 otherwise

Let J2= 1 if two jewelry stores are in the mall
= 0 otherwise

Let j3= 1 if three jewelry stores are in the mall
= 0 otherwise

Let S1= 1 if one shoe store is in the mall
= 0 otherwise

Let S2= 1 if two shoe stores are in the mall
= 0 otherwise

Let S3= 1 if three shoe stores...