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Case Study: Puyallup Mall

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1 Case Study: Puyallup Mall
Background: A development company tried to start up with a new shopping center. Issues: What types of stores should be included in the shopping center within the constraints.

2 Constraints: 1. 1600 SQ Feet are available
2. Total annual rent >= Annual fixed cost: $130,000 3. Total construction costs=$700,000 4. Clothing, HG, Misc. >= 1 store 5. # of Restaurants >= 2 stores 6. 1 <= clothing <= 2 7. Misc. <= (Clothing + HG)

3 Formulate Equation Let Xi=0-1 integer variable, where Xi=1 if store i is selected and Xi=0 if store i is not selected Max. Fl Space = 1.0(X1)+1.6(X2)+2.0(X3)+3.2(X4) +1.8(X5)+2.1(X6)+1.2(X7)+2.4(X8) +1.6(X9)+2.0(X10)+0.6(X11)+0.5(X12)+1.4(X13)+2.0(X14)+1.0(X15)

4 Given subjects in the case
Space: 1.0(X1)+1.6(X2)+2.0(X3)+3.2(X4)+1.8(X5) +2.1(X6)+1.2(X7)+2.4(X8)+1.6(X9)+2.0(X10)+0.6(X11) +0.5(X12)+1.4(X13)+2.0(X14)+1.0(X15)<=16 Annual Rent: 32.5(X1)+40.7(X2)+58.3(X3)+186(X4)+97.3(X5) +121.1(X6)+52.9(X7)+99.6(X8)+63.1(X9)+77.7(X10)+ 21.9(X11)+14.8(X12)+61.7(X13)+89.6(X14)+60.8(X15) <=130 Construction Costs: 24.6(X1)+32(X2)+41.4(X3)+124.4(X4)+64.8(X5) +79.8(X6)+38.6(X7)+66.8(X8)+45.1(X9)+54.3(X10)+ 15(X11)+13.4(X12)+42(X13)+63.7(X14)+40(X15)<=700

5 Given subjects in the case
At least one store of clothing, HG, and Misc.: X1+X2+X3+X8+X9+X10+X11+X12+X13+X14+X15>=1 At least 2 restaurants: X4+X5+X6+X7>=2 No more than 2 from clothing group: X1+X2+X3<=2 # of Misc. stores<= (# of clothing and # of HG stores) X11+X12+X13+X14+X15-X1-X2-X3-X8-X9-X10<=0

6 Setup Excel Step 1 Start Excel and create a new worksheet Step 2
Enter Headings, variables, and coefficients for the objective function Step 3 Enter cells where values of variables will be located, this is where solver will put the solution Step 4 Write formula to compute left side constraints

7 Excel Tabular Step 5 Enter right side constraints
The spread Sheet is now ready to run solver

8 Excel Solver Step 6 Click on Tools then Solver Step 7
Fill in Solver Parameters to match your Spread Sheet layout

9 Excel Solver Step 8 Set Solver Options as follows Step 9
Solve the problem and Keep solver Values

10 View the result


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