Question: You can use computer to solve. Deckmaster builds decks using student employees during the summer months of June, July, and August. The company projects that

You can use computer to solve. Deckmaster builds decks using student employees during the summer months of June, July, and
August. The company projects that it will receive the following number of calls from people who
want decks built: 100 calls in June, 300 calls in July, and 200 calls in August. Deckmaster is paid
$800 for deck that is built during the month in which the customer calls. Calls need not be
responded to during the month they are made, but if a call is responded to one month after it is
made, then Deckmaster loses $100 in future goodwill, and if a call is responded to two months
after it is made, Deckmaster loses $200 in goodwill. Each employee of Deckmaster can build 10
decks during a month. Each employee is paid a salary of $4000 per month. At the beginning of
June, the company has 8 workers. Workers can be hired at the beginning of each month and trained
immediately at a cost of $5000 per worker. Workers can be laid off at the beginning of each month
at a cost of $4000 per worker. Fractions of workers are permitted by using part-time employees.
Formulate an LP to maximize Deckmaster profits over the next 3 months. Assume that all decks
requested must be built by the end of August. How many workers should be hired or laid off at the beginning of each month?
 You can use computer to solve. Deckmaster builds decks using student

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!