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How to change the optimal no-backlogging solution

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Reference no: EM131644235

Question: Sure Step is currently getting 160 regular-time hours from each worker per month. This is actually calculated from 8 hours per day times 20 days per month. For this, they are paid $9.375 per hour ( = 1500/160). Suppose workers can change their contract so that they have to work only 7.5 hours per day regular time-everything above this becomes overtime-and their regular-time wage rate increases to $10 per hour. They will still work 20 days per month. Does this change the optimal no-backlogging solution?

Reference no: EM131644235

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