A company wishes to develop a linear program model that will satisfy demand at a minimum cost.
Question:
A company wishes to develop a linear program model that will satisfy demand at a minimum cost. Using the data in Table 9.2 and Table 9.3, which of the following statements contains the correct formulation of the objective function for this problem?
a) min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4)
b) min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4)
c) min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4) + P1 + P2 + P3 + P4
d) min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4) + W1 + W2 + W3 + W4
Table 9.2
Quarter Forecast
1 7,000
2 15,000
3 40,000
4 38,000
Hiring Cost $200 per worker
Firing Cost $350 per worker
Inventory Carrying Cost $.30 per unit
Production Per Employee 500 units per/qtr
Beginning Work Force 50 workers
Table 9.3
Decision Variables
Ht # workers hired for period t
Ft # workers fired for period t
It # units in inventory at end of period t
Pt # units produced in period t
Wt Workforce size in period t
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block