Shoemakers of America forecasts the following demand for the next 6 months:

Shoemakers of America forecasts the following demand for the next 6 months: 5,000 pairs in month 1; 6,000 pairs in month 2; 7,000 pairs in month 3; 9,000 pairs in month 4; 6,000 pairs in month 5; 5,000 pairs in month 6. It takes a shoemaker 20 minutes to produce a pair of shoes. Each shoemaker works 150 hours per month plus up to 40 hours of overtime per month. A shoemaker is paid a regular salary of $2,000 per month plus $20 per hour of overtime. At the beginning of each month, shoemakers can either hire or fire workers. It costs the company $1,000 to hire a worker and $1,200 to fire a worker. The monthly holding cost per pair of shoes is 5% of the cost of producing a pair of shoes with regular-time labor. The raw materials in a pair of shoes cost $10. At the beginning of month 1, Shoemakers has 15 workers and 500 pairs of shoes in inventory. Determine how to minimize the cost of meeting (on time) the demands of the next 6 months. Build a linear model in excel. 

Q5. The optimal solution is:

a) $551, 947      b) $551,614       c) $561,814       d) $552,614

Q6. In the optimal solution, the number of pairs shoes available (before demand) during the month 3 is:

a) 9,750              b) 7,000              c) 9,050              d) 9,000

Q7. In the optimal solution, the total number of workers hired over six months is

a) 0                      b) 1                      c) 2                      d) 4

Q8. In the optimal solution, the total number of workers fired over six months is

a) 0                      b) 1                      c) 2                      d) 4