Question

A Tiffany & Co. store makes necklaces and bracelets from gold and platinum. The store has 18 ounces of gold and 20 ounces of platinum. Each necklace requires 3 ounces of gold and 2 ounces of platinum, whereas each bracelet requires 2 ounces of gold and 4 ounces of platinum. The demand for bracelets is no more than 4. A necklace earns $400 in profits and a bracelet, $700. To maintain product diversity, the store wants that the number of bracelets produced must be no more than 2/3 of total production. The store wants to determine the number of necklaces and bracelets to make in order to maximize profit. Assume that it is possible to produce necklaces or bracelets in fractional quantities.

1) Formulate a linear programming model for this problem.
2) Sketch the feasible region.
3) Find the optimal solution and resultant profit using the graphical method
4) Which constraints are binding?
5) What happens if the profit of necklace increases to $500?

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Number of Necklaces and Bracelets to Maximize Profit Questions

This is only a preview of the solution. Please use the purchase button to see the entire solution

$28.00

or $1 if you
register a new account!

Related Homework Solutions

Business Questions
Homework Solution
$30.00
Business
Variable Costs
Fixed Costs
Rent
Price
Selling
Production
Breakeven Quantity
Marketing Plan
Annual Cost
Total Cost
Revenue
Profit
Price Cut
Real Estate
Investment
Probability
EMV
EOL
EV
w/PI
Trade Dispute Questions
Homework Solution
$83.00
Business
Financial Management
Economy
Trade Dispute
Mexico
US
Government
Products
Services
Prices
Sales
Industry
China
Japan
Business Questions
Homework Solution
$35.00
Business
Backbone
Canadian
Economic
System
Job
Satisfaction
Statement
Plan
Exhibit
Get help from a qualified tutor
Live Chats