USE SOLVER
THE TOTAL COST SHOULD EQUAL 208,000
40. Ench year a shoe manufacturing company faces demands (which must be met on time) for pairs of shoes as shown in the file P03_40x/sx. Employees work three consecutive quarters and then receive one quarter ott. For example, a worker might work during quarters 3 and 4 of one year and quarter 1 of the next year. During a quarter in which an employee works, he or she can produce up to 600 pairs of shoes. Each worker is paid 56000 por quarter: At the end of each quarter, a holding cost of $10 per pair of shoes is incurred. a. Determine how to minimize the cost per year (labor plus holding) of meeting the demands for shoes. To simplify the model, assume that at the end of each year, the ending inventory is O. (You can assume that a given worker gets the same quarter off during each year) 1. Suppose the company can pay a flat foo for a training program that increases the productivity of all of its workers. Use Solver Table to see how much the company would be willing to pay for a training program that increases worker productivity from 600 pairs of shoes per quarter to pairs of shoes per quarter where P varies from 625 to 800 in increments of 25 A B D E F G H Cauti Do nc cells, slight Not All ce num: appr 4 Hints 1. 2. 4 5 #2. Problem #40 (40 points) 6 a. Manufacturing shoes (30 points) 7 8 Wage per quarter 9 Unit holding cost 10 Production per worker 11 Wage per worker for three quarters 12 13 Production/worker schedule 14 Quarter 1 2 3 15 Workers starting this quarter 16 Number of workers in the roll 17 18 Actual Production 19 20 Production capacity 21 22 On hand after production 23 24 Demand 6000 3000 8000 1000 25 Ending inventory 26 27 Cost summary for four quarters 28 Labor cost 29 Holding cost 30 Total cost 31 32 33 b. Run SolverTable and discuss how much the company would be willing to pay for 34 the training program. Give your answer in the box below. Use Justify and make 35 sure the text is properly justified to fit into the box. (10 points) Ans: Sheet1 Sheet2 40. Ench year a shoe manufacturing company faces demands (which must be met on time) for pairs of shoes as shown in the file P03_40x/sx. Employees work three consecutive quarters and then receive one quarter ott. For example, a worker might work during quarters 3 and 4 of one year and quarter 1 of the next year. During a quarter in which an employee works, he or she can produce up to 600 pairs of shoes. Each worker is paid 56000 por quarter: At the end of each quarter, a holding cost of $10 per pair of shoes is incurred. a. Determine how to minimize the cost per year (labor plus holding) of meeting the demands for shoes. To simplify the model, assume that at the end of each year, the ending inventory is O. (You can assume that a given worker gets the same quarter off during each year) 1. Suppose the company can pay a flat foo for a training program that increases the productivity of all of its workers. Use Solver Table to see how much the company would be willing to pay for a training program that increases worker productivity from 600 pairs of shoes per quarter to pairs of shoes per quarter where P varies from 625 to 800 in increments of 25 A B D E F G H Cauti Do nc cells, slight Not All ce num: appr 4 Hints 1. 2. 4 5 #2. Problem #40 (40 points) 6 a. Manufacturing shoes (30 points) 7 8 Wage per quarter 9 Unit holding cost 10 Production per worker 11 Wage per worker for three quarters 12 13 Production/worker schedule 14 Quarter 1 2 3 15 Workers starting this quarter 16 Number of workers in the roll 17 18 Actual Production 19 20 Production capacity 21 22 On hand after production 23 24 Demand 6000 3000 8000 1000 25 Ending inventory 26 27 Cost summary for four quarters 28 Labor cost 29 Holding cost 30 Total cost 31 32 33 b. Run SolverTable and discuss how much the company would be willing to pay for 34 the training program. Give your answer in the box below. Use Justify and make 35 sure the text is properly justified to fit into the box. (10 points) Ans: Sheet1 Sheet2
