In: Operations Management
Hudson Group is a one of the largest and most
recognizable travel retailers in North America. we own and manage
over 1,000 duty-paid and duty-free stores in 89 locations,
including airports, commuter terminals, hotels and some of the most
visited landmarks and tourist destinations in the world.
In 2019 we initiated the Hudson Next Project, one of the key
pillars being the completion of design and implementation of four
new brands within the current Business Operating Model.
These brands include: Speciality stores, Newsstands, Book stores
& Brook stone stores
The new Specitity stores will be based out of the LAX airport. They
will cost approximately $19 million to contruct and will require
approximately 50 employees to operate. The Newstands, located in
Newark, New Jersey, will be based out of the airport - less than 15
miles outside of New York City, will cost $6.5 million to construct
and 20 employees to operate. The bookstores, located in Houston,
will require⁶ $8 million to construct and 15 employees to operate.
Located in the suburbs of Pittsburgh, Pennsylvania, the new
Brookstones stores will cost $12 million to construct and 50
employees to operate across all stores.
Hudson Group will pledge 75.5 million in new construction and hire
no more than 260 employees. Annually, Specialty stores are a 9.5
million operation, Newstands are a $2.4 million operation,
bookstores are a 1.2 million operation and the new Brookstones
stores net 3.3 million in volume and growing.
If Hudson Group wasnts to maximize it’s annual revenue, how many of
each for brands should they build?
***PLEASE SHOW FORMULAS AND ANSWERS PROBLEM IN EXCEL
FORMAT USING SCREENSHOTS. THANK YOU
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Answer
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