MGMT E-5050Strategic Resource

Allocation andPlanning

Jewelry StoreHomework Solution

Problem Statement

A jewelry store makes necklaces and bracelets from gold and platinum.The store has eighteen (18) ounces of gold and twenty (20) ounces ofplatinum.Each necklace requires three (3) ounces of gold and two (2) ounces ofplatinum, while each bracelet requires two (2) ounces of gold and four(4) ounces of platinum.The demand for bracelets cannot be more than four (4). A necklace earns $300.00 in profit and a bracelet earns $400.00 in pro-fit.The store wants to determine the number of necklaces and bracelets tomake in order to maximize profit.

The Jewelry Store

Problem Statement

Requirement:

1.Compute the 1st and 2nd feasible solutions manually.

2.Solve the entire problem using either QM for WINDOWS or Excel QM.

The Jewelry Store

Point X1 X2 Z

A 0 0 $0.00

B 0 4 $1,600.00

C 2 4 $2,200.00

D 4 3 $2,400.00

E 6 0 $1,800.00

The Jewelry Store

Optimal Graphical Solution

MGMT E-5050

Jewelry StoreHomework Solution