Barbie House

Barbie House

Toys R’ Us sells two types of toys, Barbie house (toy A) and Dizzie’s condo (toy B). The store owner pays $8 and $14 for each one unit of toy A and B respectively. One unit of toys A yields a profit of $2 while a unit of toys B yields a profit of $3. The store owner estimates that no more than 2000 toys will be sold every month and he does not plan to invest more than $20,000 in inventory of these toys. How many units of each type of toys should be stocked in order to maximize his monthly total profit?

What is the objective function?

Is this a minimization or maximization problem?

Identify the constraints?

Is this a non-negativity constraint model?

What are the vertices of the scenario?

What is the most optimal solution?

What is the optimal value?

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