Determining the cis-bis and arc capacities

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Reference no: EM131730887

During the next three months, Shoemakers, Inc. must meet (on time) the following demands for shoes: month 1, 1,000 pairs; month 2, 1,500 pans; month 3, 1,800 pairs. It takes 1 hour of labor to produce a pair of shoes. During each of the next three months, the following number of regular-time labor hours are available: month 1, 1,000 hours month 2, 1,200 hours; month 3, 1,200 hours. Each month, the company can require workers to put in up to 400 hours of overtime. Workers are paid only for the hours they work, and a worker receives $4 per hour for regular-time work and $6 per hour for overtime work At the end of each month, a holding cost of $1.50 per pair of shoes is incurred. Formulate an MCNFP that can be used to minimize the total cost incurred in meeting the demands of the next three months. A formulation requires drawing the appropriate network and determining the ci's, bis, and arc capacities. How would you modify your answer if demand could be backlogged (all demand must still be met by the end of month 3) at a cost of $20/pair/month?

Reference no: EM131730887

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