Highland Appliance must determine how many color TVs and VCRs should be stocked. It costs Highland $300 to purchase a color TV and $200 to purchase a VCR. A color TV requires 3 sq yd of storage space, and a VCR requires 1 sq yd of storage space. The sale of a color TV earns Highland a profit of $150, and the sale of a VCR earns Highland a profit of $100. Highland has set the following goals (listed in order of importance):
Goal 1 A maximum of $20,000 can be spent on purchasing color TVs and VCRs.
Goal 2 Highland should earn at least $11,000 in profits from the sale of color TVs and VCRs.
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Goal 3 Color TVs and VCRs should use no more than 200 sq yd of storage space.
Formulate a preemptive goal programming model that Highland could use to determine how many color TVs and VCRs to order. How would the preemptive goal formulation be modified if HighlandĂ˘â‚¬â„˘s goal were to have a profit of exactly $11,000?