Leather-All produces a line of handmade leather products. At the present time, the company is producing only belts, handbags, and attache cases. The predicted demand for these three types of items over a six-month planning horizon is as follows: The belts require an average of two hours to produce, the handbags three hours, and the attache cases six hours; all the workers have the skill to work on any item. Leather-All has 46 employees who each have a share in the firm and cannot be fired. There are an additional 30 locals that are available and can be hired for short periods at a higher cost. Regular employees earn $8.50 per hour on regular time, and $14.00 per hour on overtime. Regular time comprises a seven-hour workday and the regular employees will work as much overtime as is available. The additional workers are hired for $11.00 per hour and are kept on the payroll for at least one full month. Costs of hiring and firing are negligible. Because of the competitive nature of the industry, Leather-All does not want to incur any demand backorders. (c) Determine a production plan that meets the demand using only regular time employees and the total cost of that plan. (d) Determine a production plan that utilizes only additional employees to absorb excess demand and the cost of that plan. (e) Formulate the problem of optimizing Leather-All’s hiring schedule as a linear program. Define all variables and include the necessary constraints. Note: Please only answer c, d, e, as shown above. I have the answer for a and b
Leather-All produces a line of handmade leather products. At the present time, the company is producing only belts, handbags, and attache cases. The predicted demand for these three types of items over a six-month planning horizon is as follows:
The belts require an average of two hours to produce, the handbags three hours, and the attache cases six hours; all the workers have the skill to work on any item. Leather-All has 46 employees who each have a share in the firm and cannot be fired. There are an additional 30 locals that are available and can be hired for short periods at a higher cost. Regular employees earn $8.50 per hour on regular time, and $14.00 per hour on overtime.
Regular time comprises a seven-hour workday and the regular employees will work as much overtime as is available. The additional workers are hired for $11.00 per hour and are kept on the payroll for at least one full month. Costs of hiring and firing are negligible. Because of the competitive nature of the industry, Leather-All does not want to incur any demand backorders.
(c) Determine a production plan that meets the demand using only regular time employees and the total cost of that plan.
(d) Determine a production plan that utilizes only additional employees to absorb excess demand and the cost of that plan.
(e) Formulate the problem of optimizing Leather-All’s hiring
Note: Please only answer c, d, e, as shown above. I have the answer for a and b
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