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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 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 Contract 1 Contract 2 Contract 3 Length of Employment Cost per Employee Two months $4,600 Three months $7.300 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 cight 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 19 20 14 11 17 10 Each 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 roccive 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 is 5850 per worker hired, independently of the length of the contract. 1. Formulate a linear program (algebraic formulation) to help LNQ to determine the number of temporary employees to hire cach month on cach contract type in order to meet the estimated needs at a minimum total cost. 2. Build an Ercel spreadsheet model of your algebraic formulation with appropriate use of SUMPRODUCT functions and using the "good" spreadsheet practices. Provide summary totals for the number of temporary workers to be hired, total contract cost, total training cost, and total cost on your spreadsheet. Name this sheet "Model". 3. Run Excel's built-in Solver to find the optimal solution and generate Answer and Sensitivity reports
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