Toys R’ Us sells two types of toys, Barbie house (toy A) and Dizzie’s condo (toy B). The store owner pays $10 and $12 for each one unit of toy A and B respectively. One unit of toys A yields a profit of $5 while a unit of toys B yields a profit of $6. The store owner estimates that no more than 2000 toys will be sold every month and he does not plan to invest more than $20,000 in inventory of these toys. How many units of each type of toys should be stocked in order to maximize his monthly total profit?
Answer the following:
- What is the objective function?
- Is this a minimization or maximization problem?
- Identify the constraints?
- Is this a non-negativity constraint model?
- Graph the problem and identify the regions that hold the feasible region. You can do this by hand or use excel or POM-QM.
- What are the vertices of the scenario?
- What is the most optimal solution?
- What is the optimal value?
- Provide all resources used when computing this work. Include all drawings and sketches if any, by hand.