QUESTION 14

1. Using the data in Table 9.3, which of the following statements is true if the company maintains a chase demand strategy?

   Table 9.3

   Quarter Forecast

   1 80,000

   2 110,000

   3 100,000

   4 110,000

   Hiring Cost $100 per worker

   Firing Cost $150 per worker

   Inventory Carrying Cost $ 5 per unit

   Production Per Employee 1000 units per/qtr

   Beginning Work Force 100 workers

   		The cost of the chase demand plan is $8,000.
   		There are 10 workers Fired in quarter 3.
   		There are 30 workers fired in quarter 1.
   		There are 20 workers hired in quarter 2.

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1. A company wishes to develop a linear program model that will satisfy demand at a minimum cost z. Using the data in Table 9.1 and Table 9.2, which of the following statements contains the correct formulation of the objective function for this problem?

   Table 9.1

   Quarter Demand 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 1000 units per/qtr

   Beginning Work Force 50 workers

   Table 9.2

   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

   		min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4)
   		min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4)
   		min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4) + P1 + P2 + P3 + P4
   		min z = 200(H1 + H2 + H3 + H4) + 350(F1 + F2 + F3 + F4) + .30(I1 + I2 + I3 + I4) + W1 + W2 + W3 + W4

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QUESTION 8

1. A company wishes to develop a linear program model that will satisfy demand at a minimum cost. Using the data in Table 9.1 and Table 9.2, which of the following statements contains the correct formulation of the workforce constraint for quarter 4 for this problem?

   Table 9.1

   Quarter Demand 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 1000 units per/qtr

   Beginning Work Force 50 workers

   Table 9.2

   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

   		W4 = W3 - H4 + F3
   		W4 = W3 + H3 + F3
   		W4 = W3 - H3 - F3
   		W4 = W3 + H4 - F4