Decision Analysis (h) Essay Example

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From the given information, the objective of SuperMalls is to maximize profit under the given constraints.

Thus the linear equation can be developed as follows:

Objective function: Maximise profit (revenue-Cost)

Objective function: (30D + 8A + 20C+15B+10S)1000.


Total space hired ≤ Total Available space

2000D sq.ft + 500A sq.ft + 1000C sq.ft +750B sq.ft +600S sq.ft ≤ 10000 sq.ft

The constraint of individual entities

1≤ D≤3

0≤ A≤3

0≤ C≤3

1≤ B≤3

0≤ S≤3

From the above equation, D+A+C+B+S≥2

Therefore maximize: 30000D + 8000A + 20000C + 15000B + 10000S

Subject to 2000D + 500A + 1000C + 750B + 600S ≤ 10000 (Maximum space)

1≤ D≤3

0≤ A≤3

0≤ C≤3

1≤ B≤3

0≤ S≤3

D+A+C+B+S≥2 (Minimum renting)

D=> Number of department shops

A=> Number of Accessory shops

C=>Number of clothes shops

B=>Number of book shops

S=>Number of shoe shops

This is the linear program that shows how the supermalls should rent out to maximize profit.

Section B. Excel solution

With all the boundaries withstanding, SuperMalls should rent 2 of each of the shops in order to maximize income.






The maximum rent income is $166,000 for the maximum space of 9700sq.ft that can be rented out for the given constraints.

For the given constraints, the limiting constraint is S (shop) and minimum of 2 department (D). As illustrated in the solver results.

From the solver, there is no feasible solution. Find details from the attached excel file.