Question

1. Enterprise Rental Car needs to buy up to 200 new cars with $5,123,000. The cars will be three types: Smart cars at $24,000, sedans at $27,000, and luxury cars at $32,000. The new owners of the company want to purchase at least as many smart cars as sedans and luxury cars combined. They feel they need to have a minimum of 25 of each possible to rent. If they can earn $40 a day for smart cars, $45 a day for sedans, and $50 a day for luxury cars, how many of each should they buy in order to maximize their daily revenue?

Linear programming / excel solver

If possible please show all equations/constraints

Answer 1

LP in mathematical form can be written as

Maximize 40M + 45S + 50L

Subject to

M + S + L <= 200

24000M + 27000S + 32000L <= 5123000

M – S – L >= 0

M >= 25

S >= 25

L >= 25

M, S, L >= 0

Here, M = number of smart cars, S = number of sedans and L = number of luxury cars

The excel model is shown below

The formulas are shown below

The solver parameters are shown below

The result is shown below