Let the merchant stock \(x\) desktop model and \(y\) portable models. Therefore,
\(x \geq 0\) and \(y \geq 0\)
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.
\(\therefore 25000 \mathrm{x}+40000 \mathrm{y} \leq 7000000\)
\(5 \mathrm{x}+8 \mathrm{y} \leq 1400\)
The monthly demand of computers will not exceed 250 units.
\(\therefore x+y \leq 250\)
The profit on a desktop model is Rs. 4500 and the profit on a profit model is Rs. 5000 .
Total profit, \(Z=4500 \mathrm{x}+5000 \mathrm{y}\)
Thus, the mathematical formulation of the given problem is,
Maximum \(\mathrm{Z}=4500 \mathrm{x}+5000 \mathrm{y}\)....(1)
Subject to the constraints,
\(5 x+5 y \leq 1400 \ldots \ldots . .(2)\)
\(x+y \leq 250 \ldots \ldots . .(3)\)
\(x, y \geq 0 \ldots \ldots \ldots(4)\)
The feasible region determined by the system of constraints is as shown.
The corner points are \(\mathrm{A}(250,0), \mathrm{B}(200,50)\) and \(\mathrm{C}(0,175)\)
The values of \(Z\) at these corner points are as follows
Corner point A(250,0),
\(Z=4500 \mathrm{x}+5000 \mathrm{y}=1125000\)
Corner point A(200,50),
\(Z=4500 \mathrm{x}+5000 \mathrm{y}=1150000\)
Corner point A(0,175),
\(Z=4500 \mathrm{x}+5000 \mathrm{y}=875000\)
The maximum value of Z is 1150000 at (200,50).
Thus, the merchant should stock 200 desktop models and 50 portable models to get the maximum profit of Rs.1150000.
