2 Vivians Gem Company produces two types of gems: Types 1 and 2. Each Type 1 gem...
Question:
2 Vivian’s Gem Company produces two types of gems:
Types 1 and 2. Each Type 1 gem contains 2 rubies and 4 diamonds. A Type 1 gem sells for $10 and costs $5 to produce. Each Type 2 gem contains 1 ruby and 1 diamond.
A Type 2 gem sells for $6 and costs $4 to produce. A total of 30 rubies and 50 diamonds are available. All gems that are produced can be sold, but marketing considerations dictate that at least 11 Type 1 gems be produced. Let x1=
number of Type 1 gems produced and x2 = number of Type 2 gems produced. Assume that Vivian wants to maximize profit. Use the LINDO printout in Figure 18 to answer the following questions:
a What would Vivian’s profit be if 46 diamonds were available?
b If Type 2 gems sold for only $5.50, what would be the new optimal solution to the problem?
c What would Vivian’s profit be if at least 12 Type 1 gems had to be produced?
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston