Question

AA 40. Each year, a shoe manufacturing company faces demands (which must be met on time) for pairs of shoes as shown in the file P03_40.xlsx. Employees work three consecutive quarters and then receive one quarter off. 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 $6000 per 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 0. (You can assume that a given worker gets the same quarter off during each year) b. Suppose the company can pay a flat fee for a training program that increases the productivity of all of its workers. Use SolverTable to see how much the company would be willing to pay for a training program that increases worker productivity from 600 nairs of shoes ner quarter to Pnairs of shoes ner 3:51 PM

Answer 1

a39 Given information l. for I shirt it requires 3 Stuare yard of cloth for 1 Pair 1 Pair of Pant a square yoord of cloth Opening Stock 100 skirts, 200 Pair & pants Step- Demand four month como Particulars shirts Pants (a) required a number (100) (200) b) (Less) opening Stock com required production (C) celoth required to produce those items (1900x3) (1300x@) 2000 1500 1300 1900 5700 aboo = 6300 step-a caluculation of cost of article of clothing -> Total article clothing reluired (5700 + 2600) → Cost of Regular labour Q400 x $10 Cost of overtime labour $ 94,400 $ 24800 11 59008 16

step-3 caluallation f Cast for month a > required sluore youds of cloth 64oo = 3600 shirts 1200 x3 Pants 1400 x 2 = 2800 6000 no month - 2 Sluare yords & cloth available for balence you suar yords will be used from unwed material 8 month i 400 buon 24000 Cast of requelar labour 2400 x $ 10 Cost o overtime labour 4000 x 16 = $ 64000 - - Total cost of mong month a & 288000 poolt milo 2. - บรา in de poliure