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In: Operations Management

Hudson Group is a one of the largest and most recognizable travel retailers in North America....

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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keosha answered 6 months ago
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