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 (=1500/160). Suppose workers can change their contract so that they have to work only 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. Does this change the optimal no-backlogging solution?
Answer to relevant QuestionsSuppose SureStep could begin a machinery upgrade and training program to increase its worker productivity. This program would result in the following values of labor hours per pair of shoes over the next four months: 4, 3.9, ...In the Barney-Jones investment problem, increase the maximum amount allowed in any investment to $150,000. Then run a one-way sensitivity analysis to the money market rate on cash. Capture one output variable: the maximum ...Suppose the investments in the Barney-Jones problem sometimes require cash outlays in more than one year. For example, a $1 investment in investment B might require $0.25 to be spent in year 1 and $0.75 to be spent in year ...As it currently stands, investment 7 in the capital budgeting model in Figure 14.40 has the lowest ratio of NPV to cash requirement, 2.5. Keeping this same ratio, can you change the cash requirement and NPV for investment 7 ...In the original Western Airlines set-covering model in Figure 14.52, we used the number of hubs as the objective to minimize. Suppose instead that there is a fixed cost of locating a hub in any city, where these fixed costs ...
Post your question