It takes a shoemaker 15 minutes to produce a pair of shoes. Each shoemaker works 150 hours

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It takes a shoemaker 15 minutes to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hours per month of overtime.

A shoemaker is paid a regular salary of $2000 per month plus $50 per hour for overtime. At the beginning of each month, Shoemakers can either hire or fire workers. It costs the company $1500 to hire a worker and $1900 to fire a worker. The monthly holding cost per pair of shoes is 3% of the cost of producing a pair of shoes with regular-time labor.

The raw materials in a pair of shoes cost $10. At the beginning of month 1, Shoemakers has 13 workers.

Determine how to minimize the cost of meeting (on time) the demands of the next 6 months.

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Related Book For  book-img-for-question

Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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