During the next four months the SureStep Company must meet (on time) the following demands for pairs of shoes: 3000 in month 1; 5000 in month 2; 2000 in month 3; and 1000 in month 4. At the beginning of month 1, 500 pairs of shoes are on hand, and SureStep has 100 workers. A worker is paid $1500 per month. Each worker can work up to 160 hours per month before he or she receives overtime. A worker can work up to 20 hours of overtime per month and is paid $13 per hour for overtime labor. It takes four hours of labor and $15 of raw material to produce a pair of shoes. At the beginning of each month, workers can be hired or fired. Each hired worker costs $1600, and each fired worker costs $2000. At the end of each month, a holding cost of $3 per pair of shoes left in inventory is incurred. Production in a given month can be used to meet that month’s demand. SureStep wants to use LP to determine its optimal production schedule and labor policy. In the current no-backlogging problem, SureStep doesn’t hire any workers and uses almost no overtime. This is evidently because of low demand. Change the demands to 6000, 8000, 5000, and 3000, and reoptimize. Is there now hiring and overtime? With this new demand pattern, explore the trade-off between hiring and overtime by running a two-way SolverTable. As inputs, use the hiring cost per worker and the maximum overtime hours allowed per worker per month, varied in some reasonable way. As outputs, use the total number of workers hired over the four months and the total number of overtime hours used over the four months. Write up your results in a short memo to SureStep management

BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659
BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

Solutions

Chapter
Section
Chapter 4.4, Problem 17P
Textbook Problem

During the next four months the SureStep Company must meet (on time) the following demands for pairs of shoes: 3000 in month 1; 5000 in month 2; 2000 in month 3; and 1000 in month 4. At the beginning of month 1, 500 pairs of shoes are on hand, and SureStep has 100 workers. A worker is paid $1500 per month. Each worker can work up to 160 hours per month before he or she receives overtime. A worker can work up to 20 hours of overtime per month and is paid $13 per hour for overtime labor. It takes four hours of labor and $15 of raw material to produce a pair of shoes. At the beginning of each month, workers can be hired or fired. Each hired worker costs $1600, and each fired worker costs $2000. At the end of each month, a holding cost of $3 per pair of shoes left in inventory is incurred. Production in a given month can be used to meet that month’s demand. SureStep wants to use LP to determine its optimal production schedule and labor policy.

In the current no-backlogging problem, SureStep doesn’t hire any workers and uses almost no overtime. This is evidently because of low demand. Change the demands to 6000, 8000, 5000, and 3000, and reoptimize. Is there now hiring and overtime? With this new demand pattern, explore the trade-off between hiring and overtime by running a two-way SolverTable. As inputs, use the hiring cost per worker and the maximum overtime hours allowed per worker per month, varied in some reasonable way. As outputs, use the total number of workers hired over the four months and the total number of overtime hours used over the four months. Write up your results in a short memo to SureStep management

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Chapter 4 Solutions

Practical Management Science
Ch. 4.3 - A small business requires different numbers of...Ch. 4.3 - A small business requires different numbers of...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.4 - During the next four months the SureStep Company...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.5 - Chandler Oil has 5000 barrels of crude oil 1 and...Ch. 4.6 - Repco produces three drugs, A, B, and C, and can...Ch. 4.6 - Repco produces three drugs, A, B, and C, and can...Ch. 4.6 - Repco produces three drugs, A, B, and C, and can...Ch. 4.6 - Repco produces three drugs, A, B, and C, and can...Ch. 4.7 - At the present time, the beginning of year 1, the...Ch. 4.7 - At the present time, the beginning of year 1, the...Ch. 4.7 - At the present time, the beginning of year 1, the...Ch. 4.7 - At the present time, the beginning of year 1, the...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.7 - At the present time, the beginning of year 1, the...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.7 - James Judson is the financial manager in charge of...Ch. 4.8 - Pine Valley Bank has three branches. You have been...Ch. 4.8 - The Salem Board of Education wants to evaluate the...Ch. 4.8 - You have been asked to evaluate the efficiency of...Ch. 4.8 - You have been commissioned by Indiana University...Ch. 4 - A bus company believes that it will need the...Ch. 4 - During each four-hour period, the Smalltown police...Ch. 4 - Shoemakers of America forecasts the following...Ch. 4 - NewAge Pharmaceuticals produces the drug NasaMist...Ch. 4 - You have decided to enter the candy business. You...Ch. 4 - Sunblessed Juice Company sells bags of oranges and...Ch. 4 - A bank is attempting to determine where its assets...Ch. 4 - Young MBA Erica Cudahy can invest up to 20,000 in...Ch. 4 - A fertilizer company blends silicon and nitrogen...Ch. 4 - A chemical manufacturer uses chemicals 1 and 2 to...Ch. 4 - Hilands Appliances stocks laptops, TVs,...Ch. 4 - Many Wall Street firms use LP models to select a...Ch. 4 - A coal company produces coal at three mines and...Ch. 4 - A furniture company manufactures tables and...Ch. 4 - A chemical company produces three products, A, B,...Ch. 4 - Abotte Products produces three products, A, B, and...Ch. 4 - An investor has 100,000 to invest right now (the...Ch. 4 - At the beginning of year 1, you have 100,000....Ch. 4 - You now have 10,000, and the following investment...Ch. 4 - An oil company processes oil into aviation fuel...Ch. 4 - All steel manufactured by Allied Steel must meet...Ch. 4 - United Steel manufactures two types of steel at...Ch. 4 - Based on Heady and Egbert (1964). Walnut Orchard...Ch. 4 - Candy Kane Cosmetics (CKC) produces Leslie...Ch. 4 - Federated Oil has refineries in Los Angeles and...Ch. 4 - A feed company produces two types of cattle feed,...Ch. 4 - Carrington Oil produces gas 1 and gas 2 from two...Ch. 4 - Based on Thomas (1971). A toy company produces...Ch. 4 - A company produces two products: A and B. Product...Ch. 4 - A bank needs exactly two employees working each...Ch. 4 - Based on Gaballa and Pearce (1979). Northwest...Ch. 4 - A rock company uses five types of rocks to fill...Ch. 4 - An automobile manufacturer needs to plan its...Ch. 4 - An oil company produces gasoline from five inputs....Ch. 4 - The HiTech company produces Blu-Ray disc players....Ch. 4 - During the next two months an automobile...Ch. 4 - You want to take out a 450,000 loan on a 20-year...Ch. 4 - A graduated payment mortgage (GPM) enables the...Ch. 4 - Suppose you are planning for retirement. At the...Ch. 4 - Based on Brams and Taylor (2000). Suppose that Eli...Ch. 4 - AdminaStar processes Medicare claims. At the...Ch. 4 - All steel manufactured by Allied Steel must meet...Ch. 4 - During the next four quarters, Dorian Auto must...Ch. 4 - The Internal Revenue Service (IRS) has determined...Ch. 4 - You own a wheat warehouse with a capacity of...Ch. 4 - You can calculate the risk index of an investment...Ch. 4 - Based on Magoulas and Marinos-Kouris (1988). An...Ch. 4 - Capsule Drugs manufactures two drugs. The drugs...Ch. 4 - Molecular Products produces three chemicals: B, C,...Ch. 4 - Bexter Labs produces three products: A, B, and C....Ch. 4 - Mondo Motorcycles is determining its production...Ch. 4 - An automobile manufacturing company has a 500,000...Ch. 4 - Broker Sonya Wong is currently trying to maximize...Ch. 4 - Budget Auto produces inexpensive cars. Each car is...Ch. 4 - The ZapCon Company is considering investing in...Ch. 4 - You are a CFA (chartered financial analyst). An...Ch. 4 - Aluminaca produces 100-foot-long, 200-foot-long,...Ch. 4 - Each day, Eastinghouse produces capacitors during...Ch. 4 - During the next three months, a heating and...Ch. 4 - Gotham City National Bank is open Monday through...Ch. 4 - Based on Rothstein (1973). The Springfield City...Ch. 4 - Based on Charnes and Cooper (1955). Alex Cornby...Ch. 4 - City 1 produces 500 tons of waste per day, and...Ch. 4 - Based on Smith (1965). Silicon Valley Corporation...Ch. 4 - The Fresh Turkey Company produces two types of...Ch. 4 - The production line employees at Grummins Engine...Ch. 4 - Based on Lanzenauer et al. (1987). To process...Ch. 4 - Based on Robichek et al. (1965). The Korvair...Ch. 4 - Mackk Engine produces diesel trucks. New...Ch. 4 - Each hour from 10 A.M. to 7 P.M., Bank One...Ch. 4 - Owens-Wheat uses two production lines to produce...Ch. 4 - Rylon Corporation manufactures Brute cologne and...Ch. 4 - Sunco Oil has three different processes that can...Ch. 4 - Flexco produces six products in the following...Ch. 4 - Each week, Chemco can purchase unlimited...Ch. 4 - Bexter Labs produces three products: A, B, and C....Ch. 4 - Based on Franklin and Koenigsberg (1973). The city...Ch. 4 - Based on Carino and Lenoir (1988). Brady...Ch. 4 - Based on Dobson and Kalish (1988). Chandler...Ch. 4 - Based on Robichek et al. (1965). At the beginning...Ch. 4 - During each six-hour period of the day, the...Ch. 4 - Based on Glassey and Gupta (1978). A paper...Ch. 4 - Three bonds, as listed in the file P04_127.xlsx,...Ch. 4 - You have been assigned to develop a model that can...Ch. 4 - You have been assigned to develop a model that can...Ch. 4 - Keefer Paper produces recycled paper from paper...Ch. 4 - In this chapter, we give you the cost of producing...Ch. 4 - Discuss how the aggregate planning model could be...Ch. 4 - A large CPA firm currently has 100 junior staff...Ch. 4 - The employee scheduling model in this chapter was...Ch. 4 - Explain why it is problematic to include a...

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