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Decision support system I need the OPTIMUM PART ONE For the next year, Walkway Company must meet the following demands for pair of shoes: Month

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Decision support system
I need the OPTIMUM
PART ONE For the next year, Walkway Company must meet the following demands for pair of shoes: Month Jan Feb March April May Jun Jul Aug Sep Oct Nov Dec Demand 1300 7890 4500 1800 6777 3500 2600 8100 1980 9300 5600 1600 The fluctuation on the demand is clearly revealed in Table (1). Based on his experience, the manager realized that they can't pursue one policy to satisfy the variation on their demand. Hence, the manager held a meeting with the other managers and IS people to set a specific policy suited their situation, and as a result of their meeting the following policy has been placed: If the demand >= 2500 Overtime is allowed If the demand >= 5000 Premium time is allowed If the demand >= 8000 Subcontracting should be pursued At the beginning of Jan, 2000 pair of shoes are in the inventory. The starting production level is 1200 pair of shoes. The manager wants to maintain at least 1000 pair of shoes each month in the inventory in order to meet their demand with no backlogging. However, for certain reasons, then manager wants to have zero inventory at the end of Dec. The inventory costs are $14. Hiring cost is estimated to be $80 and firing cost is to be $35 with maximum firing of 20 hours. However, hiring is possible only from June to September which considered as the period of high unemployment. This policy can't be applied with overtime/premium time. A worker is paid $ 30 per hour. Each worker can work up to 1000 hours a month before he can receive overtime. Overtime cost is $45 per hour and is limited to 600 hours. Any time over this 1600 hour is paid at a premium overtime rate of $60 per hours. When less than 700 hours of work are available, idle workers perform cleanup and maintenance activities. The company estimates that each idle hour costs them $13. However, if the company decides to subcontract some of the production for the high demand expected, the subcontracting cost, which would replace the labor costs, are expected to be $150. Produce a plan for the next year

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