Question: The decision variables of the given LP model determines how many necklaces (X1), bracelets(X2), rings (X3), and earrings (X4) a jewelry store should stock. The objective function measures profit.
Constraint-1 measures display space in units, constraint-2 measures time to set up the display in minutes. Constraints-3 and constraint-4 are marketing restrictions.
MAX = $100X1+$120X2+$150X3+$125X4
Constraints
c1) X1+2X2+2X3+2X4 = 108
c2) 3X1+5X2+X4 = 120
c3) X1+X3 = 25
c4) X2+X3+X4 = 50
a) Provide the sensitivity analysis report
b) How many necklaces, bracelets, rings, and earrings should be stocked? What is the total profit?
c) How much space will be left unused?
d) How much time will be used?
e) By how much will the second marketing restriction be exceeded?
f) Find the total profit after increasing the unit profit of rings and earrings by $5 simultaneously.
g) Find the new total profit after decreasing the time to set up the display by 65 minutes.
h) You are offered the chance to obtain more space. The offer is for 15 units and the cost of increasing the space is $1500. Would you accept this offer? Why?