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8.11 Pricing & Marketing Strategy Pricing Maximize Sales : 20X1 + 6.8 X2 + 12X3 – 65,000 X4 X1 : Dollars spend on advertising X2 : Dollars spend on store.

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Presentation on theme: "8.11 Pricing & Marketing Strategy Pricing Maximize Sales : 20X1 + 6.8 X2 + 12X3 – 65,000 X4 X1 : Dollars spend on advertising X2 : Dollars spend on store."— Presentation transcript:

1 8.11 Pricing & Marketing Strategy Pricing Maximize Sales : 20X X2 + 12X3 – 65,000 X4 X1 : Dollars spend on advertising X2 : Dollars spend on store display X3 : Dollars spend in on-hand wallpaper inventory X4 : Percentage markup taken above wholesale cost of a roll

2 11.15 Pure Integer Programming Maximize annual passenger-carrying capability Z = 125,000 X1 + 81,000 X2 X1 : Boeing 757 X2 : Boeing 767 Subject to : Maximum Quantity1X1 + X2 ≤ 17 Maximum Quantity2X1 ≥ 1/3 (X1 + X2) Maximum Fund80,000,000 X ,000,000 X2 ≤ 1,600,000,000 Maximum Maintenance Cost800,000 X ,000 ≤ 8,000,000

3 So, in order to maximize annual passenger-carrying capability the airline must purchased 3 units of Boeing 757 and 11 units of 767 with 1,266,000 capacity


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