• A factory has forecast demand for each of their 2 products for the next 12 month which they may meet but cannot exceed. They currently have 200 employees who are on salary ($3800/month), that is they have to be paid whether they are producing product or not. There are 160 productive hours per worker in a month. Overtime is on an hourly basis and costs $36/hour. Maximum overtime per employee per month is 40 hours. Employees may be hired ($5,000 each), but not laid off during this year. The selling price of the two products is $350 and $45 respectively. The amount of time required to produce each product is 5 hours and 1 hour respectively. Ignore material and overhead costs. Inventory carrying costs are $7 and $0.90 per month respectively. Shortages are not allowed. Initial Inventories are zero. Maximize the profit. (0.7 points)
• Also write out the equations for problem 1 (0.3 points)