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A TV company produces Smart TVs . The company wants to plan production and workforce levels for the next 6 months. The table below shows
A TV company produces Smart TVs The company wants to plan production and workforce levels for
the next months. The table below shows the number of workdays and Smart TV demand in thousands
for each month. Note that if the demand is exceeded, the leftovers can be carried to the next month. If the
demand is not satisfied, the items are backordered.
The annual inventory holding cost per Smart TV is $ If the company cannot satisfy a demand on
time, a backorder cost of $ is incurred. Additionally, past data shows that workers can produce
thousand Smart TVs in days. The company currently has workers and Smart TVs in stock. The
company incurs a hiring cost of $ and firing cost of $ per worker. The company cannot hire or fire
more than of its workforce in any month ie if there are workers at the end of a month, they can
hire or fire a maximum of people starting next month The payroll is $ per worker per day.
Suppose that the company cannot change the number of workers they have for the first months. The
company also aims to have at least workers and Smart TVs in stock at the end of the month planning
horizon. Write a Linear Programming LP model that identifies the workforce and production plan, aiming
to minimize the total cost.
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