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2. Question: Steelcase Company needs to manufacture 11,200 chairs in their factory next week. They have two kinds of employees: managers and blue color workers.
2. Question: Steelcase Company needs to manufacture 11,200 chairs in their factory next week. They have two kinds of employees: managers and blue color workers. Steelcase currently has 24 managers and 128 blue color workers. Each blue color worker can make 280 chairs per week. Managers do not engage in actual pillow-making. A recent study done on Steelcase's operation con- cluded that, for proper supervision, there must be at least 1 manager for every 4 blue workers. The study also suggested that Steelcase might be able to cut its costs by doing some or all of the following: hiring new employees as blue color workers (the training cost is $80/worker) 1 firing some current blue color workers (the fired worker is given $200 severance pay) promoting some current blue color workers to managers (the training cost is $160/worker) demoting some current managers to blue color workers (no cost associated with this) Pay for a blue color worker is $320/week. Pay for a manager is $600/week. All hiring and firing, and training occur before the upcoming work week, and the costs of those activities will be charged against the upcoming week. Steelcase wishes to perform the appropriate hiring, firing, promotions and demotions that will minimize its operations cost for next week. Decision variables: Model: 2. Question: Steelcase Company needs to manufacture 11,200 chairs in their factory next week. They have two kinds of employees: managers and blue color workers. Steelcase currently has 24 managers and 128 blue color workers. Each blue color worker can make 280 chairs per week. Managers do not engage in actual pillow-making. A recent study done on Steelcase's operation con- cluded that, for proper supervision, there must be at least 1 manager for every 4 blue workers. The study also suggested that Steelcase might be able to cut its costs by doing some or all of the following: hiring new employees as blue color workers (the training cost is $80/worker) 1 firing some current blue color workers (the fired worker is given $200 severance pay) promoting some current blue color workers to managers (the training cost is $160/worker) demoting some current managers to blue color workers (no cost associated with this) Pay for a blue color worker is $320/week. Pay for a manager is $600/week. All hiring and firing, and training occur before the upcoming work week, and the costs of those activities will be charged against the upcoming week. Steelcase wishes to perform the appropriate hiring, firing, promotions and demotions that will minimize its operations cost for next week. Decision variables: Model
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