A local firm manufactures children’s toys. The projected demand over the next four months for one particular model of toy robot is Forecasted Demand Month Workdays (in aggregate units)
July 23 3,825 August 16 7,245 September 20 2,770 October 22 4,440 Assume that a normal workday is eight hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4.00 per aggregate unit held per month. Assume that it requires an average of 1 hour and 40 minutes for one worker to assemble one toy. Shortages are not permitted.
Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October.
Assume that the current workforce level is 35 workers. Find the optimal plan by formulating as a linear program.