Question

2. Geniue Antique Egyptian Artifacts, Inc. produces three varieties of antique artifacts for sale to tourists: statuettes, lamps, and urns. All of the artifacts include special clay. A statuette requires 13 ounces of clay, a lamp uses 18 ounces, and each urn takes 17 ounces. Existing capacity of clay is 28,000 ounces per month. A special material is also used to produce the three artifacts, with each statuette needing 0.8 ounces, each lamp 0.7 ounces, and a typical urn requiring 1.0 ounces. The company has inventory of 1,200 ounces of special material per month. The owner of the company wishes to maintain a balanced marketing program, and has ordered that production of statuettes to be limited to 275. The overall per unit profit for artifacts is the following: $199 per statuette, $99 per lamp, and $145 per urn. The owner wants to know how much of each type of antique to fabricate monthly in order to optimize profit.

a. What are the objective function, decision variables, and constraints for this optimization problem?

b. Develop an Excel spreadsheet and use Excel-Solver to find an optimal solution for this problem.

c. Describe the optimal solution in words.

Answer 1