Reference no: EM133140493

Question - County Cork Jewelry Store has 800 diamonds, 625 rubies and 700 emeralds from which they will make bracelets and necklaces that they have advertised in their Christmas brochure. Each of the rubies is approximately the same size and shape as the diamonds and the emeralds. County Cork Jewelry Store will make a net a profit of $250 on each bracelet, which is made with 2 rubies, 3 diamonds, and 4 emeralds, and $500 on each necklace, which includes 5 rubies, 7 diamonds, and 3 emeralds.

a) How many of each bracelet and necklace should County Cork Jewelry Store make to maximize its profit?

If the optimal linear programming solution to the County Cork Jewelry Store problem in problem part a is 131.58 bracelets and 57.89 necklaces. Characterize the (i) rounded off solution; and (i) the rounded down solution.

b) The shadow price associated with emeralds in the linear programming solution is $13.16, and the upper limit of the range of feasibility for emeralds is 1066.67. A gem buyer at County Cork reasoned that since the purchase of emeralds is an included cost, she should be willing to pay up to $13.16 above County Corks' current cost for emeralds. When she found a seller, who would sell him 100 additional emeralds at $13.00 over the original cost, she purchased them, figuring it would add 100($13.16 - $13.00) = $16 to company profits. She said, "Hey, $16 is $16."

Required - In applying your knowledge of linear programming to date, why might she be looking for another job?