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# Company makes handwoven carpets while estimating demands for next six months as 600, 400, 500, 800, 700, and 300 respectively. Company has 20 workers, each of whom makes 20 carpets per month (e.g., if company has 10 workers in

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## Company makes handwoven carpets while estimating demands for next six months as 600, 400, 500, 800, 700, and 300 respectively. Company has 20 workers, each of whom makes 20 carpets per month (e.g., if company has 10 workers in a specific month, then they will produce 10 x 20 = 200 carpets) and gets a monthly salary of $2,000 (i.e., regular pay for making one carpet is $100). Also, company has no initial inventory of carpets. To address the fluctuation of demand, company considers the following ways: • Overtime: Overtime pay is 80% more than regular pay, and also, workers can put in at most 30% overtime, i.e., each employee can makes at most 6 carpets via overtime per month. • Hiring and Firing: Company can hire and fire workers every month, but these cost $320 and $400, respectively. • Inventory: Company chooses to store surplus as inventory, and in this case, holding one carpet for one month costs $8. Given this context, formulate a linear programming to minimize the company's total cost to meet all the estimated demand for following six months. Company makes handwoven carpets while estimating demands for next six months as 600, 400, 500, 800, 700, and 300 respectively. Company has 20 workers, each of whom makes 20 carpets per month (e.g., if company has 10 workers in a specific month, then they will produce 10 x 20 = 200 carpets) and gets a monthly salary of $2,000 (i.e., regular pay for making one carpet is $100). Also, company has no initial inventory of carpets. To address the fluctuation of demand, company considers the following ways: • Overtime: Overtime pay is 80% more than regular pay, and also, workers can put in at most 30% overtime, i.e., each employee can makes at most 6 carpets via overtime per month. • Hiring and Firing: Company can hire and fire workers every month, but these cost $320 and $400, respectively. • Inventory: Company chooses to store surplus as inventory, and in this case, holding one carpet for one month costs $8. Given this context, formulate a linear programming to minimize the company's total cost to meet all the estimated demand for following six months. Company makes handwoven carpets while estimating demands for next six months as 600, 400, 500, 800, 700, and 300 respectively. Company has 20 workers, each of whom makes 20 carpets per month (e.g., if company has 10 workers in a specific month, then they will produce 10 x 20 = 200 carpets) and gets a monthly salary of $2,000 (i.e., regular pay for making one carpet is $100). Also, company has no initial inventory of carpets. To address the fluctuation of demand, company considers the following ways: • Overtime: Overtime pay is 80% more than regular pay, and also, workers can put in at most 30% overtime, i.e., each employee can makes at most 6 carpets via overtime per month. • Hiring and Firing: Company can hire and fire workers every month, but these cost $320 and $400, respectively. • Inventory: Company chooses to store surplus as inventory, and in this case, holding one carpet for one month costs $8. Given this context, formulate a linear programming to minimize the company's total cost to meet all the estimated demand for following six months.

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## Accounting Tools for business decision making

ISBN: 978-0470095461

4th Edition

Authors: kimmel, weygandt, kieso

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