1 / 3

Kevin McShane 12/5/06 Homework Presentation 8-10 Pricing and Marketing Strategy Problem

Kevin McShane 12/5/06 Homework Presentation 8-10 Pricing and Marketing Strategy Problem Kruger Paint & Wallpaper Objective – Maximize Sale of Rolls X1 = Advertising Costs X2 = Indoor Display Costs X3 = Wallpaper Inventory X4 = Percent of Markup.

landen
Download Presentation

Kevin McShane 12/5/06 Homework Presentation 8-10 Pricing and Marketing Strategy Problem

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Kevin McShane 12/5/06 • Homework Presentation 8-10 Pricing and Marketing • Strategy Problem • Kruger Paint & Wallpaper • Objective – Maximize Sale of Rolls • X1 = Advertising Costs • X2 = Indoor Display Costs • X3 = Wallpaper Inventory • X4 = Percent of Markup

  2. Maximize 20X1 + 6.8X2 + 12X3 + (-65,000)X4 • Subject to constraints: • X1 + X2 + X3 less than or equal to 17,000 • X1 greater than or equal to 3000 • X2 greater than or equal to .05X3 • X2 - .05X3 greater than or equal to 0 • X4 greater than or equal to .20 • X4 less than or equal to .45

  3. a) X1 X2 X3 X4 RHS Dual Maximize 20 6.8 12 -65000 Constraint 1 1 1 1 0 <= 17000 20 Constraint 2 1 0 0 0 >= 3000 0 Constraint 3 0 1 -0.05 0 >= 0 -13.2 Constraint 4 0 0 0 1 >= 0.2 -65000 Constraint 5 0 0 0 1 <= 0.45 0 b) Solution-> 17000 0 0 0.2 327,000. c) The difficulty with the answer is that there are no values for X2 and X3? d) Additional constraint could be that they each have a minimal value.

More Related