Linear Programming Applications

Topics: Temporary work, Employment, Costs Pages: 3 (743 words) Published: January 24, 2010
EMP 504 Quantitative methods in Management
Name: Yi-Chun Kuo
Student id: 106357165
HW #7: Linear Programming Applications
Due Date: 11pm on Nov 6, 2008

Davis Instrument has two manufacturing plants located in Atlanta, Georgia. Product demand varies considerably from month to month, causing Davis extreme difficulty in workforce scheduling. Recently Davis started hiring temporary workers supplied by Workers Unlimited, a company that specializes in providing temporary employees for firms in the grater Atlanta area. Workforce Unlimited offered to provide temporary employees under three contract opinions that differ in terms of the length of employment and the cost. The three options are summarized: |options |length of employment |cost | |1 |one month | $ 2,000 | |2 |two months | $ 4,800 | |3 |three months | $ 7,500 |

The longer contract periods are more expensive because Workforce Unlimited experiences greater difficulty finding temporary workers who are willing to commit to longer work assignments. Over the next 6 months, Davis projects the following needs for additional employees. |Months |Jan |Feb |Mar |Apr |May |Jun | |Employees needed |10 |23 |19 |26 |20 |14 |

Each month, Davis can hire as many temporary employees as needed under each of the 3 options. For instance, if Davis hires 5 employees in Jan under Option2, Workforce Unlimited will apply Davis with 5 temporary workers who will work 2 months: January and February. For these workers, Davis will have to pay 5($4800)=$24000. Because of some merger negotiations under way, Davis does not want to commit any contractual...
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