Module : Linear Programming

Formulation. Preferred method is to use Word or an equivalent word processor/text editor to type out in the format of the notes example.

Formulate but do not solve the following situation as an LP problem (it is difficult to solve graphically):

Chuck-E-Chicken is a new franchise specializing in fried chicken and video games.

Each location is required to use at least 1200 square feet of space for tables (where customers eat) and games.

Each table takes up 60 sq. ft., costs $500, and generates an average of $300 gross profit per day. Each game takes up 20 sq. ft., costs $2,500, and generates $500 gross profit per day.

There is a total furnishings budget per franchise of $50,000, that is, no more than $50,000 can be spent on tables and games.

The franchise agreement requires that we have at least 20 tables. You want to find the number of tables and games to install per location to make as much profit as possible.

Tips:

--define your decision variables precisely, including dimension (unit of measure), action (what we will do), and time frame if applicable.

--state the objective function in terms of the decision variables including whether to MAX or MIN

--state all constraints including non-negativity if applicable.

You may find it helpful to write the constraints in words before writing the equations.

--do not attempt to solve this problem!