Question: Problem 2 . Remember Harold Gray from the last homework? Harold Grey owns a small farm in the Salinas Valley that grows apricots. The apricots
Problem Remember Harold Gray from the last homework? Harold Grey owns a small
farm in the Salinas Valley that grows apricots. The apricots are dried on the premises and
sold to a number of large supermarket chains. Based on past experience and committed
contracts, he estimates that sales over the next five years in thousands of packages will be
as follows:
Assume that each worker stays on the job for at least one year, and that Grey currently has
two workers on the payroll. He estimates that he will have packages on hand at the
end of the current year. Assume that, on average each worker is paid $ per year and
is responsible for producing packages. Inventory costs have been estimated to be
cents per package per year, and shortages are not allowed.
Based on the effort of interviewing and training new workers, Farmer Grey estimates that it
costs $ for each worker hired. Severance pay amounts to $ per worker.
a Formulate the problem of determining the optimal hiring policy to minimize total cost
as an integer linear program.
b Solve the linear program using linear programming solver. Round the variables in the
resulting solution and determine the cost of the plan you obtain.
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