Reference no: EM13195103

Shoemakers of America forecasts the following demand for the next 6 mos: 5000 pairs in month 1, 6000 pairs in month 2, 5000 pairs in month 3, 9000 pairs in month 4, 6000 pairs in month 5, 5000 pairs in month 6. It takes a shoemaker 15 min to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hrs overtime. A shoemaker is paid a regular salary of 2000 per month plus $50 for overtime.At the beginning of each month, shoemakers can either fire or hire workers. It costs the co. $1500 to hire a worker and $1900 to fire a worker.the monthly holding cost per pair of shoes is 3% of the cost of producing a pair of shoes with regular time labor. the raw materials in a pair cost $10. At the begining of month 1, Shoemakers has 13 workers. Determine how to minimize the cost of meeting (on time) demands of the next 6 months. (This needs to be done in Excel)