A jewelry store makes necklaces and bracelets from gold and platinum. The store has developed the following lin- ear programming model for determining the number of necklaces and bracelets (x, and x,) to make in order to maximize profit: Maximize Z = 300x, + 400x2 (profit, $) subject to 3x1 + 2x2 < 18 (gold, oz) 2x, + 4x2 s 20 (platinum, oz) x2 54 (demand, bracelets) X1, x2 2 () a. Solve this model graphically. b. The maximum demand for bracelets is 4. If the store produces the optimal number of bracelets and neck- laces, will the maximum demand for bracelets be met? If not, by how much will it be missed? c. What profit for a necklace would result in no bracelets being produced, and what would be the op- timal solution for this problem?

A jewelry store makes necklaces and bracelets from gold and platinum. The store has developed the following lin- ear programming model for determining the number of necklaces and bracelets (x, and x,) to make in order to maximize profit: Maximize Z = 300x, + 400x2 (profit, $) subject to 3x1 + 2x2 < 18 (gold, oz) 2x, + 4x2 s 20 (platinum, oz) x2 54 (demand, bracelets) X1, x2 2 () a. Solve this model graphically. b. The maximum demand for bracelets is 4. If the store produces the optimal number of bracelets and neck- laces, will the maximum demand for bracelets be met? If not, by how much will it be missed? c. What profit for a necklace would result in no bracelets being produced, and what would be the op- timal solution for this problem?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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