Exercise_1 - IELM202 Exercises 1/6/2011 1. Zales Jewelers...

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IELM202 Exercises 1/6/2011 1. Zales Jewelers uses rubies and sapphires to produce two types of rings. A type 1 ring requires 2 rubies, 3 sapphires, and 1 hour of labor. A type 2 ring uses 3 rubies, 2 sapphires, and 2 hours of labor. Each type 1 ring sells for $400, and types 2 ring sells for $500. At present, Zales has 100 rubies, 120 sapphires, and 70 hours of labor. Extra rubies can be purchased at a cost of $100 per ruby. Market demand requires that the company produce at least 20 type 1 rings and at least 25 type 2 rings. The goal is to maximize profit. To make an LP formulation, we have defined the following variables: X1 = type 1 rings produced X2 = type 2 rings produced R = number of rubies purchased (I) Formulate the LP to maximize the profit: Max Z= 400X1 + 500X2 – 100R s.t. 2X1 + 3X2 - R ≤ 100 (1) 3X1+2X2 120 (2) X1+2X2 ≤ 70 (3) X1 ≥ 20 (4) X2 ≥ 25 (5) X1,X2, R ≥0 (II) Given the partial output of Excel Solver, answer the following question: Final Reduced Objective
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Exercise_1 - IELM202 Exercises 1/6/2011 1. Zales Jewelers...

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