1. Formulate the stated problems as a linear model (clearly state decision variables, objective function, and constraints). ATTACH YOUR FORMULATIONS!!!!!!!!!!!!!

2. Find the optimal solution using Solver as shown in class PowerPoint slides.

3. Answer questions using your sensitivity report.

4. Attach your Excel solver files.

Question 4.

A jeweler and her apprentice make silver pins and necklaces by hand. Each week they have 80 hours of labor and 36 ounces of silver available. It requires 8 hours of labor and 2 ounces of silver to make a pin and 10 hours of labor and 6 ounces of silver to make a necklace. Each pin earns the jeweler $400 in profit, and a necklace earns $100. The jeweler wants to know how many of each item to make each week to maximize profit.

a. Formulate an integer programming model for this problem.

b. Solve this model by using the computer. Compare this solution with the solution without integer restrictions, and indicate whether the rounded-down solution would have been optimal.