SureStep is currently getting 160 regular-time hours from each worker per month. This is actu-ally calculated from 8 hours per day times 20 days per month. For this, they are paid $9.375 per hour(51500y160). Suppose workers can change theircontract so that they only have to work 7.5 hours perday regular-time—everything above this becomesovertime—and their regular-time wage rate increasesto $10 per hour. They will still work 20 days per month. Will this change the optimal no-backloggingsolution?

SureStep is currently getting 160 regular-time hours from each worker per month. This is actu-ally calculated from 8 hours per day times 20 days per month. For this, they are paid $9.375 per hour(51500y160). Suppose workers can change theircontract so that they only have to work 7.5 hours perday regular-time—everything above this becomesovertime—and their regular-time wage rate increasesto $10 per hour. They will still work 20 days per month. Will this change the optimal no-backloggingsolution?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 50P

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SureStep is currently getting 160 regular-time hours from each worker per month. This is actually calculated from 8 hours per day times 20 days per month. For this, they are paid $9.375 per hour (51500y160). Suppose workers can change their contract so that they only have to work 7.5 hours per day regular-time— everything above this becomes overtime—and their regular-time wage rate increases to $10 per hour. They will still work 20 days per month. Will this change the optimal no-backlogging solution?
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