Suppose SureStep could begin a machinery upgrade and training program to increase its worker productivity. This program would result in the following values of labor hours per pair of shoes over the next 4 months: 4, 3.9, 3.8, and 3.8. How much would this new program be worth to SureStep, at least for this 4-month planning horizon with no backlogging?

How might you evaluate the program’s worth beyond the next 4 months?

Skill-Extending Problems