exercise 26 a and b nahmias production and operations analysis 7th edition.

per year and is responsible for producing 30,000 pack- ages. Inventory costs have been estimated to be 4 cents per package per year, and shortages are not allowed. Based on the effort of interviewing and training estimates that it costs $500 for each worker hired. Severance pay amounts to new workers, Farmer Grey $1,000 per worker. Assuming that shortages are not allowed, determine the minimum constant workforce that he will need over the next five years. . b. Evaluate the cost of the plan found in part (a). c. Formulate this as a linear program. d. Solve the problem and round-off the solution and determine the cost of the resulting plan. 26. A local semiconductor firm, Superchip, is planning its workforce and production levels over the next year. The firm makes a variety of microprocessors and uses sales dollars as its aggregate production measure. Based on orders received 156 Chapter Three Sales and Operations Planning and sales forecasts provided by the marketing department, the estimate of dollar sales for the next year by month is as follows: Production Predicted Demand Month Days (in $10,000) 22 340 January February March April May 16 380 21 220 19 100 23 490 June 20 625 24 375 July August September October November December 12 310 19 175 22 145 20 120 165 16 Inventory holding costs are based on a 25 percent annual interest charge. It is anticipated that there will be 675 workers on the payroll at the end of the current year and inventories will amount to $120,000. The firm would like to have at least $100,000 of inventory at the end of December next year. It is estimated that each worker accounts for an average of $60,000 of production per year (assume that one year consists of 250 working days). The cost of hiring a new worker is $200, and the cost of laying off a worker is $400. a. Formulate this as a linear program. b. Solve the problem. Round the variables in the resulting solution and determine the cost of the plan you obtain. 3.6 per year and is responsible for producing 30,000 pack- ages. Inventory costs have been estimated to be 4 cents per package per year, and shortages are not allowed. Based on the effort of interviewing and training estimates that it costs $500 for each worker hired. Severance pay amounts to new workers, Farmer Grey $1,000 per worker. Assuming that shortages are not allowed, determine the minimum constant workforce that he will need over the next five years. . b. Evaluate the cost of the plan found in part (a). c. Formulate this as a linear program. d. Solve the problem and round-off the solution and determine the cost of the resulting plan. 26. A local semiconductor firm, Superchip, is planning its workforce and production levels over the next year. The firm makes a variety of microprocessors and uses sales dollars as its aggregate production measure. Based on orders received 156 Chapter Three Sales and Operations Planning and sales forecasts provided by the marketing department, the estimate of dollar sales for the next year by month is as follows: Production Predicted Demand Month Days (in $10,000) 22 340 January February March April May 16 380 21 220 19 100 23 490 June 20 625 24 375 July August September October November December 12 310 19 175 22 145 20 120 165 16 Inventory holding costs are based on a 25 percent annual interest charge. It is anticipated that there will be 675 workers on the payroll at the end of the current year and inventories will amount to $120,000. The firm would like to have at least $100,000 of inventory at the end of December next year. It is estimated that each worker accounts for an average of $60,000 of production per year (assume that one year consists of 250 working days). The cost of hiring a new worker is $200, and the cost of laying off a worker is $400. a. Formulate this as a linear program. b. Solve the problem. Round the variables in the resulting solution and determine the cost of the plan you obtain. 3.6