Midlife Shoes, Inc. is a manufacturer of sensible shoes for aging baby-boomers. The company is having great
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Month Demand
January .......1000
February .......1200
March ........1200
April ..........3000
May ........3000
June ........3000
July .........2200
August .......2200
September .......4000
October ........4000
November .......2200
December ........3000
Beginning inventory 0 units
Beginning workforce 8 workers
Production rate 100 units per worker per month
Regular capacity Maximum of 15 workers
Overtime capacity Half of regular production
Subcontracting capacity 1000 units
Regular production cost $36 per unit
Overtime production cost $54 per unit
Subcontracting cost $70 per unit
Inventory holding cost $10 per unit
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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