Question: Assignment 2 : Atlantic Instruments has three manufacturing plants located in Saint John, Moncton and Halifax. Product demand varies considerably from month to month, causing
Assignment : Atlantic Instruments has three manufacturing plants
located in Saint John, Moncton and Halifax. Product demand varies
considerably from month to month, causing the company extreme
difficulty in workforce scheduling. Recently, Atlantic Instruments
started hiring temporary workers supplied by Smith Limited, a
company that specializes in providing temporary employees for firms.
Smith Limited offered to provide temporary employees under four
contract options that differ in terms of the length of employment and
the cost. The four options are summarized:
Option Length of Employment Cost
One Month $
Two Months $
Three Months $
Four Months $
The longer contract periods are more expensive because Atlantic
Instruments experiences greater difficulty finding temporary workers
who are willing to commit to longer work assignments.
Over the next eight months, Atlantic Instruments projects the following
needs for additional employees :
Each Month Employees Needed:
January:
February:
March:
April:
May:
June:
July:
August:
Each month, Atlantic Instruments can hire as many temporary
employees as needed under each of the four options. For instance, if
Atlantic Instruments hires four employees in January under Option
Smith Limited will supply Atlantic Instruments with four temporary
workers who will work for two months: January and February.
For these workers, Atlantic Instruments will have to pay
$$ Because of some merger negotiations under way,
Atlantic Instruments does not want to commit to any contractual
obligations for temporary employees that extend beyond August.
Atlantic Instruments 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 Atlantic Instruments in the past.
Atlantic Instruments estimates that the cost of training is $ each
time a temporary employee is hired. Thus, if a temporary employee is
hired for one month, Atlantic Instruments will incur a training cost of
$ but will incur no additional training cost if the employee is on a
longer contracts.
A Formulate an appropriate optimization model that can be used to
determine the number of temporary employees Atlantic Instruments
should hire to meet the projected needs at a minimum total cost. Show
your work. Marks
B Solve your developed optimization model using ExcelSolver and
obtain the optimal solution. Marks
C Suppose the manager decided to hire only from one of the three
options and in April, if needed. Develop appropriate
constraints for this situation. Show your work. Marks
Please answer ABC and include picture of excel sheet showing formulas as well as solver tab showing formulas
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