Solution Exhibit 10.15 Graphic solution to find optimal mix, Fiordi-Ligio Srl. 10.16 Optimal sales mix fora retailer, sensitivity analysis. (30–40 min) 1 Let G = floor space of grocery products carried. D = floor space of dairy products carried. The LP formula of the decision is Maximise €10G + €3D Subject to €10G + €3D < 4,000 €10G > 1,000
€3D > 1800 2 Vier-und-Zwanzig may wish to maintain its reputation as a full-service food store carrying both grocery and dairy products. Customers may not be attracted if Vier- und-Zwanzig carries only the product line with the highest unit contribution margins. (Marketing and economics courses examine this issue under the label of interdependencies in the demand for products) 3 Solution Exhibit 10.16 presents the graphic solution. The optimal solution is 3,200 square metres of grocery products and 800 square metres of dairy products.
