Audio Disks Will Be Opening Outlets in the Greater Phoenix

question 27

Essay

Audio Disks will be opening outlets in the greater Phoenix area. The estimated sales at each store are dependent not only on the store location, but on the number of sales personnel, as presented in the table below ($000/year). Each store requires at least 2 sales people, and a pool of 9 salespeople is available. $$\begin{array} { c | c c c c } & { \text { Staff Size } } \\& 2 & 3 & 4 & 5 \\\hline \text { Store 1 } & 60 & 85 & 90 & 100 \\\text { Store 2 } & 105 & 120 & 130 & 150 \\\text { Store 3 } & 120 & 145 & 160 & 175\end{array}$$
a.What would the states be in the dynamic programming formulation?
b.Draw the network that represents the dynamic programming formulation.
c.Given the above network, solve the sales personnel allocation problem by finding the longest path.

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Definitions:

Stock Price

The current market price of a company's shares, as bought and sold by investors on stock exchanges.

Cost of Capital

The mandatory rate of gain a business must realize on its investment schemes to maintain its market identity and attract funds.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently equity is used to generate profits.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, typically represented by the value of all assets minus current liabilities.