Question: Part three: Reconsidering the TechLink data in Exercise 1 , assume that the plant has 1 , 2 5 0 employees and maintains a no
Part three:
Reconsidering the TechLink data in Exercise assume that
the plant has employees and maintains a nolayoff
policy. Overtime is limited to at most hours per
employee per month, and there is no subcontracting option.
TechLink has a team of individuals willing to work as
seasonal employees. The cost of bringing them on is
euros per employee, and the layoff cost is euros per
employee.
i Determine the optimal production, hiring, and layoff
schedule.
j Explore how the optimal schedule changes if the seasonal
pool grows from to
k In comparison to having permanent and
seasonal employees, assess whether TechLink would
significantly benefit from carrying only permanent
employees but having seasonal employees.
Consider the case in which TechLink has
permanent employees and seasonal employees. Does
TechLink gain more by eliminating its nolayoff policy
for its permanent employees or by increasing the
seasonal employee pool from to Assume that
permanent employees can be hired or laid off at the same
cost as the seasonal employees.
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