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Asked by Vathsala Last Modified
Answer 
Charlie
Let the merchant stock x desktop models and y portable models. Therefore,
x ≥ 0 and y ≥ 0
The cost of a desktop model is Rs 25000 and of a portable model is Rs 4000. However, the merchant can invest a maximum of Rs 70 lakhs
The monthly demand of computers will not exceed 250 units.
The profit on a desktop model is Rs 4500 and the profit on a portable model is Rs 5000.
Total profit, Z = 4500x + 5000y
Thus, the mathematical formulation of the given problem is
subject to the constraints,
The feasible region determined by the system of constraints is as follows.
The corner points are A (250, 0), B (200, 50), and C (0, 175).
The values of Z at these corner points are as follows.
| Corner point | Z = 4500x + 5000y | |
| A(250, 0) | 112500o | |
| B(200, 50) | 115000o | → Maximum |
| C(0, 175) | 875000 |
The maximum value of Z is 11500o0 at (200, 50).
Thus, the merchant should stock 200 desktop models and 50 portable models to get the maximum profit of Rs 115000 0.
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