You may use Excel or GAMS. I recommend GAMS. If you are using Excel, I recommend OpenSolver. I Highly recommend that you us
You may use Excel or GAMS. I recommend GAMS. If you are using Excel, I recommend OpenSolver.
I Highly recommend that you use GAMS for this problem.
Alveva Subscription Box Service
Alveva is an online beauty subscription service that sends subscribers a monthly box of four to seven curated make-up and beauty products. Alveva’s monthly subscription service allows consumers to test in-trend products before purchasing them at a full price from Alveva’s website. Table 1 below displays the per unit wholesale cost of each product that can be used to create different boxes each month.
Table 1. Per unit wholesale cost of available products
List of Products |
Cost |
Moisturizer A |
$ 15.00 |
Moisturizer B |
$ 18.00 |
Moisturizer C |
$ 11.00 |
Moisturizer D |
$ 18.00 |
Lipstick A |
$ 10.00 |
Lipstick B |
$ 7.00 |
Lipstick C |
$ 20.00 |
Lipstick D |
$ 9.00 |
Concealer A |
$ 24.00 |
Concealer B |
$ 6.00 |
Concealer C |
$ 14.00 |
Concealer D |
$ 24.00 |
Highlighter A |
$ 19.00 |
Highlighter B |
$ 19.00 |
Highlighter C |
$ 5.00 |
Highlighter D |
$ 6.00 |
Nail polish A |
$ 27.00 |
Nail polish B |
$ 15.00 |
Nail polish C |
$ 6.00 |
Nail polish D |
$ 9.00 |
After customers receive their subscription boxes, they can indicate the products they did not enjoy through a monthly survey. The Analytics Department at Alveva uses this information to categorize customers into 10 subscriber types. The number of customers that belong to each subscriber type is given in Table 2. In addition to collecting subscribers’ feedback, the firm also keeps track of the products that the customers receive each month to ensure the delivery of new items in each box. The ones in Table 2 indicate a product that a subscriber type must not receive in their next box. For example, subscriber type 1 must not receive moisturizer A, lipstick C, concealer B, highlighters A and B, and nail polish D in their next monthly box. The same box should be sent to all subscribers of the same type. At most 80000 units of each product type can be produced due to resource limits.
2
Table 2. Subscriber types and requirements
List of Products |
Subscriber 1 |
Subscriber 2 |
Subscriber 3 |
Subscriber 4 |
Subscriber 5 |
Subscriber 6 |
Subscriber 7 |
Subscriber 8 |
Subscriber 9 |
Subscriber 10 |
Moisturizer A |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Moisturizer B |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
Moisturizer C |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
0 |
Moisturizer D |
0 |
1 |
1 |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
Lipstick A |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
1 |
Lipstick B |
0 |
0 |
0 |
0 |
0 |
1 |
1 |
1 |
1 |
1 |
Lipstick C |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
1 |
Lipstick D |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Concealer A |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
Concealer B |
1 |
1 |
1 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
Concealer C |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Concealer D |
0 |
0 |
1 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
Highlighter A |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Highlighter B |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Highlighter C |
0 |
0 |
1 |
0 |
0 |
1 |
1 |
0 |
0 |
1 |
Highlighter D |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
1 |
Nail polish A |
0 |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Nail polish B |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
Nail polish C |
0 |
1 |
0 |
0 |
0 |
1 |
1 |
0 |
0 |
1 |
Nail polish D |
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Total # of customers |
8264 |
5248 |
7676 |
5497 |
23140 |
12723 |
20746 |
22761 |
6922 |
3966 |
1) If Alveva charges $8 per item in the monthly subscription box, how should the boxes be curated and assigned to different subscribers to maximize the total profit?
a. Write the algebraic formulation for this optimization problem.
b. Solve using Excel or GAMS and report your findings.
Option solver=BONMIN;.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.