All demand must be met during that month. Each sneaker is made by workers and requires 20 minutes per pair. Each worker works 200 hours per month and can work up to 40 hours of overtime per month....

All demand must be met during that month. Each sneaker is made by workers and requires 20 minutes per pair. Each worker works 200 hours per month and can work up to 40 hours of overtime per month. Workers are paid a salary of $3000 per month, plus $75 per hour of overtime. Prior to each month’s production, Fitness Sneaker can either hire additional workers or lay off some of its current workers. Due to administrative and other expenses, it costs $2000 to hire a worker and $3000 to fire a worker. Currently, at most 3000 pairs of sneakers can be stored in inventory, and this number is calculated at the end of the month (after all production). Each stored pair costs $5 per month in storage fees. If there are 15 workers and 1000 pairs of sneakers in storage at the beginning of month 1, determine how Fitness Sneaker can minimize its cost of meeting the demand.

May 05, 2022
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