Question

1. Mr. Meadows Cookie Company makes a variety of chocolate chip cookies in the plant in Albion, Michigan. Based on orders received and forecasts of buy-ing habits, it is estimated that the demand for the next four months is 850, 1,260, 510, and 980, expressed in thousands of cookies. During a 46-day period when there were 120 workers, the company produced 1.7 million cookies. Assume that the number of workdays over the four months are respectively 26, 24, 20, and 16. There are currently 100 workers employed, and there is no starting inventory of cookies.

1. What is the minimum constant workforce required to meet demand over the next four months?
2. Assume that cI = 10 cents per cookie per month, cH = $100, and cF = $200. Evaluate the cost of the plan derived in part (a).
3. Formulate as a linear program. Be sure to define all variables and include the required constraints.
4. Solve for the optimal solution.

Suppose that the cost of hiring workers each period is $100 for each worker until 20 workers are hired, $400 for each worker when between 21 and 50 workers are hired, and $700 for each worker hired beyond 50.

5. Write down the complete linear programming formulation of the revised problem.

Answer 1