Problem Description:

A large manufacturing company is closing three of its existing plants and intends to transfer some of its more skilled employees to three plants that will remain open. The number of employees available for transfer from each closing plant is as follows:

Closing Plants Transferable Employees

1 60

2 50

3 70

Total 180

The following number of employees can be accommodated at the three plants remaining open:

Open Plants Employees Demanded

A 45

B 90

C 65

Total 200

Each transferred employee will increase product output per day at each plant, as shown in the following table:

To (employees)

From A B C

1 5 8 6

2 10 9 12

3 7 6 8

The company wants to transfer employees to ensure the maximum increase in product output. Employees that cannot be transferred will have to be layoff. On the other hand, a shortage of employees will result in outside hires.

Questions:

a)Represent the problem in a graphical network (the closing plants are the supply nodes). Use circles for the plants and arrows for the transfers.

b) Is the problem balanced? Is there enough supply to satisfy demand? Make any necessary changes to the network.

c) Define decision variables and provide the complete linear programming model.

d) Make a model in Excel and find the optimal strategy to transfer the employees.

e) Communicate the solution in a business professional manner.