Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 4

John Hoke owns Hoke's Spokes, a bicycle shop. Most of John's bicycle sales are customer orders; however, he also stocks bicycles for walk-in customers. He stocks three types of bicycles- road-racing, cross-country, and mountain. A road-racing bike costs $1,200, a crosscountry bike costs $1,700, and a mountain bike costs $900. He sells road-racing bikes for $1,800, cross-country bikes for $2,100, and mountain bikes for $1,200. He has $12,000 available this month to purchase bikes. Each bike must be assembled; a road-racing bike requires 8 hours to assemble, a cross-country bike requires 12 hours, and a mountain bike requires 16 hours. He estimates that he and his employees have 120 hours available to assemble bikes. He has enough space in his store to order 20 bikes this month. Based on past sales, John wants to stock at least twice as many mountain bikes as the other two combined because mountain bikes sell better.
Formulate a linear programming model for this problem.