At the beginning of each year, the bus company must decide how many drivers to hire or

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At the beginning of each year, the bus company must decide how many drivers to hire or fire.

It costs $4000 to hire a driver and $2000 to fire a driver. A driver’s salary is $10,000 per year. At the beginning of year 1, the company has 50 drivers.

A driver hired at the beginning of a year can be used to meet the current year’s requirements and is paid full salary for the current year.

a. Determine how to minimize the bus company’s salary, hiring, and firing costs over the next 5 years.

b. Use SolverTable to determine how the total number hired, total number fired, and total cost change as the unit hiring and firing costs each increase by the same percentage.

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Related Book For  book-img-for-question

Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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