You are provided with an existing model which is found in the file Homework 5 Prob 3 begin.doe for you to avoid starting from scratch. The cost for an individual that can make only one product is $10/hour. For those that can make two different products the cost increases to $12/hour, and individuals that can make all three types of products are paid $14/hour.

Although current economic conditions make present expansion unlikely, management wants to look at the potential for future expansion. In a manner similar to Example 5-3 in your textbook, please develop a model that includes variables for additional personnel. There should be three variables for additional personnel who can make only one product (one variable for Product 1, Product 2, and Product 3), and there should be one variable for a utility person who can make all three products. Each of these additional people work only in the noon to 4:00 pm time frame, as with the problem in Example 5-3. The business opens at 8:00 am.

Wrapping is part of the process for making Product 1, Product 2, and Product 3. All three products exist in their queue in an unwrapped state and deteriorate if they stay unprocessed and unwrapped, so excess wait time has value. Product 1 begins deterioration after 5 minutes. Products 2 and 3 begin deterioration after 4 and 3 minutes, respectively. Compute excess wait time for each product and make it an output variable (shows up in the report) for each product.

Exercise your modified model by determining total labor cost for current conditions with each variable equal to zero, and then, exercise your model for one additional worker in each category (Product 1, Product 2, Product 3, and a utility person). Find the difference in cost for 30 replications.

Homework 5 Prob 3 begin.doe

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