Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LNQ Inc. has a packaging plant located in northern Virginia. Demand for packaging varies from month to month, making workforce scheduling a challenging task. Consequently,

image text in transcribed
image text in transcribed
LNQ Inc. has a packaging plant located in northern Virginia. Demand for packaging varies from month to month, making workforce scheduling a challenging task. Consequently, LNQ wants to start hiring employees from Instant Workers, Inc., which can provide temporary workers under three different contract options that differ in length of employment and cost: Option Length of Employment Cost per Employee Contract 1 Two months $4,600 Three months $7.300 Contract 3 Contract 2 Four months $9.300. The longer contract periods are more expensive as Instant Workers has greater difficulty finding temporary employees who are willing to commit to lenghthier work assignments. Over the first eight months of next year. LNQ has estimated the following needs for workers: Month Minimum Num. Workers Required January February March April May June July August 12 25 10 11 19 17 20 14 Ench month, LNQ can hire as many temporary workers as needed under each of the contract options. Because of some merger negotiations underway, LNQ does not want to commit to any contractual obligations for temporary workers that extend beyond August LNQ's quality control program requires cach temporary worker to receive training at the time of hire. The training program is required even if the person worked for the company in the past. LNQ estimates that the cost of training in $850 per worker hired, independently of the length of the contract 1. The optimal plan is to hire a total of and temporary workers for the months of January through August, respectively, for a total cost of $ 2. The optimal hiring plan will result in costs of $. for contracts and $ for training 3. The constraint on temporary employee requirements in June is (bindingonbinding) because It has a shadow price of 8 and a right-hand side range of 4. If the number of temporary workers required in June increases to 15, then the optimal hiring plan (changes/stays the same), and the total cost (increases/decreases/stay the sume)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Distinguish between poor and good positive and neutral messages.

Answered: 1 week ago

Question

Describe the four specific guidelines for using the direct plan.

Answered: 1 week ago