2 National Instruments has two manufacturing plants located in southwestern Virginia. Product demand varies considerably from...

 

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2 National Instruments has two manufacturing plants located in southwestern Virginia. Product demand varies considerably from month to month, making workforce scheduling difficult. As a result, National wants to start hiring temporary employees supplied by Labor Ready, Inc. Labor Ready will 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 One month Two months Three months The longer contract periods are more expensive because Labor Ready has greater difficulty finding temporary employees who are willing to commit to lengthier work assignments. Over the first six months of next year. National projects the following needs for additional workers: Month Minimum # of employees needed $2000 $4800 $7500 January February 23 10 March April May June 19 26 20 14 Each month, National can hire as many temporary employees as needed under each of the three options. Because of some merger negotiations underway, National does not want to commit to any contractual obligations for temporary employees that extend beyond June. National's quality control program requires each temporary employee to receive training at the time of hire. The training program is required even if the person worked for the company in the past. National estimates that the cost of training is $875 each time a temporary employee is hired. There is no additional training cost for longer- term contracts. 1. Formulate a linear program to help company management determine the number of temporary employees to hire each month on each contract plan to meet their projected needs at a minimum total cost. Download at n 2 National Instruments has two manufacturing plants located in southwestern Virginia. Product demand varies considerably from month to month, making workforce scheduling difficult. As a result, National wants to start hiring temporary employees supplied by Labor Ready, Inc. Labor Ready will 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 One month Two months Three months The longer contract periods are more expensive because Labor Ready has greater difficulty finding temporary employees who are willing to commit to lengthier work assignments. Over the first six months of next year. National projects the following needs for additional workers: Month Minimum # of employees needed $2000 $4800 $7500 January February 23 10 March April May June 19 26 20 14 Each month, National can hire as many temporary employees as needed under each of the three options. Because of some merger negotiations underway, National does not want to commit to any contractual obligations for temporary employees that extend beyond June. National's quality control program requires each temporary employee to receive training at the time of hire. The training program is required even if the person worked for the company in the past. National estimates that the cost of training is $875 each time a temporary employee is hired. There is no additional training cost for longer- term contracts. 1. Formulate a linear program to help company management determine the number of temporary employees to hire each month on each contract plan to meet their projected needs at a minimum total cost. Download at n

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Given data Step1 Decide the decision variables as shown below Let x be the number of employees hired ... View the full answer