The Optimal Linear Programming Solution to the Kings Department Store

question 19

Essay

The optimal linear programming solution to the Kings Department Store problem in problem 1 is 131.58 bracelets and 57.89 necklaces.
A.Characterize the (i) rounded off solution; and (ii) 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 Kings reasoned that since the purchase of emeralds is an included cost, he should be willing to pay up to $13.16 above Kings' current cost for emeralds.When he found a seller who would sell him 100 additional emeralds at $13.00 over the original cost, he purchased them, figuring it would add 100($13.16 - $13.00) = $16 to company profits.He said, "Hey, $16 is $16." Why might he be looking for another job?

Learn about the role of responsibility accounting in management and its impact on different levels of an organization.

Identify direct and indirect expenses in a department store setting.

Understand the distinction between cost centers, profit centers, and investment centers in an organizational context.

Calculate and interpret service department charge rates and allocations across divisions.

---

Definitions:

Shaping

A process in behavioral psychology involving the reinforcement of closer and closer approximations of a desired behavior.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each.

Variable-Ratio Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses, making it highly effective for maintaining consistent behavior.

Shaping

A method of teaching new behaviors by rewarding closer and closer approximations of the desired behavior until the target behavior is achieved.