MIS Project

Term Project, EGMP-50

Roll Number Name Signature

EGMP50002 Ajay Kumar

EGMP50009 Arvind Singh Butola

EGMP 500

EGMP50030 Lokendra Saini

 Executive Summary:

The objective is to for each of 3 skill sets & for each year we need to create variables for the
workers that get recruited, put them into below 3 types:

 Part-time work,
 Full time workers,
 Redundant, and over manned

Further, for each pair of skill sets and every year we have a variable for the number of workers
that get retrained to a higher/lower skill set level. The amount of people which are in part-time
and can be recruited is limited.

Then, we check of each of these variables by inserting the constraints/limitations. The variable
limitation ensures that per skill level and per year the current needed workers & the laid off
people.

The unskilled limited force that per year is two hundred workers can be retrained from
unskilled to semiskilled due to capacity limitations. Further, no one can be trained in one year
from Unskilled to Skilled.

The retraining semi-skilled has a constraint that the retraining of semiskilled workers to skilled
workers is limited due to capacity limitations.

The ovemanning limitation/constraints are that the total ovemanning over all skill levels in one
year is no more than 150.

Our, first objective is to minimize the total number of laid off workers.

The second objective is to minimize the total cost of all employed workers and costs for
retraining the manpower.
Problem Description

Company is modernizing its production process and therefore its staffing needs are expected to
change. Through the purchase of new machinery, it is expected that there will be less need for
unskilled labor and more need for skilled and semi-skilled labor. In addition, a lower sale
forecast, expected by economic slowdown in the next year, is expected to further reduce labor
needs across all categories. This is causing unrest with labor union.

The aim is to create an optimal multi-period operational plan to minimize the total number of
layoffs over the whole horizon. An alternative aim is to minimize the total costs.

The forecast for labor needs over the next three years is as follows:

Unskilled Semi-skilled Skilled

Current Strength 2000 1500 1000
Year 1 1000 1400 1000
Year 2 500 2000 1500
Year 3 0 2500 2000

We need to determine the following for each of the next three years:

1. Recruitment
2. Retraining
3. Layoffs (redundancy)
4. Part-time vs. full-time employees

It is important to note that labor is subject to a certain level of natural attrition each year. The
rate of attrition is relatively high in the first year after a new employee is hired and relatively
low in subsequent years. The expected attrition rates are as follows:

Unskilled (%) Semi-skilled (%) Skilled (%)

Less than one year’s service 25 20 10

More than one year’s service 10 5 5

All of the current workers have been with the company for at least one year.

Recruitment

Each year, it is possible to hire a limited number of employees in each classification from
outside the company as follows:

Unskilled Semi-skilled Skilled

500 800 500

Retraining

Each year, it is possible to train up to 200 unskilled workers to make them into semi-skilled
workers. This training costs the company $400 per worker.

In addition, it is possible train semi-skilled workers to make them into skilled workers. However,
this number cannot exceed 25% of the current skilled labor force and this training costs $500
per worker.

Lastly, downgrading workers to a lower skill can be done. However, 50% of the downgraded
workers will leave the company, increasing the natural attrition rate described above.

Layoffs

Each laid-off worker is entitled to a separation payment at the rate of 200 per unskilled worker
and 500 per semi-skilled or skilled worker.

Over manning

It is possible to employ up to 150 workers over the entire company than are needed, but this
will result in the following additional cost per excess employee per year.

Unskilled Semi-skilled Skilled

$500 $800 $500

Part-time worker

Up to 50 employees of each skill level can be assigned to part-time work. The cost doing so (per
employee, per year) is as follows:
 Unskilled Semi-skilled Skilled
$500 $400 $400

Note: A part-time employee is half as productive as a full-time employee.

Definition

Actual Manpower Required

Variable Description
MUS No. of unskilled worker in base Yr.
MSS No. of semi-skilled worker in a base Yr.
MSK No. of skilled worker in a base Yr.
MUS1 No. of unskilled worker in a Yr. 1
MSS1 No. of semi-skilled worker in a Yr. 1
MSK1 No. of skilled worker in a Yr. 1
MUS2 No. of unskilled worker in a Yr. 2
MSS2 No. of semi-skilled worker in a Yr. 2
MSK2 No. of skilled worker in a Yr. 2
MUS3 No. of unskilled worker in a Yr. 3
MSS3 No. of semi-skilled worker in a Yr. 3
MSK3 No. of skilled worker in a Yr. 3

Manpower Hiring Retraining of manpower

Variable Description Variable Description
No. of unskilled trained to Semi-Skilled Yr.
MUSH1 No. of unskilled workers hired Yr. 1 RUSSS1 1
No. of semi-skilled trained to skilled
MSSH1 No. of semi-skilled worker hired Yr.1 RSSSK1 worker Yr. 1
No. of unskilled trained to Semi-Skilled Yr.
MSKH1 No. of Skilled worker hired Yr.1 RUSSS2 2
No. of semi-skilled trained to skilled
MUSH2 No. of unskilled workers hired Yr. 2 RSSSK2 worker Yr. 2
No. of unskilled trained to Semi-Skilled Yr.
MSSH2 No. of semi-skilled worker hired Yr.2 RUSSS3 3
No. of semi-skilled trained to skilled
MSKH2 No. of Skilled worker hired Yr.2 RUSSSK3 worker Yr. 3
MUSH3 No. of unskilled workers hired Yr.3 Redundancy
MSSK3 No. of semi-skilled worker hired Yr.3 RUS1 No. of unskilled redundant in Yr. 1
No. of semi-skilled worker redundant in
MSKH3 No. of Skilled worker hired Yr.3 RSS1 Yr.1
Downgrading the workforce RSK1 No. of Skilled worker redundant Yr.1
No. of semi-skilled downgraded to un skilled
DSSUS1 Yr. 1 RUS2 No. of unskilled workers redundant Yr. 2
 No. of skilled worker downgraded to semi-
DSKSS1 skilled Yr. 1 RSS2 No. of semi-skilled worker redundant Yr.2
No. of semi-skilled downgraded to un skilled
DSSUS2 Yr. 2 RSK2 No. of Skilled worker redundant Yr.2
No. of skilled worker downgraded to semi-
DSKSS2 skilled Yr. 2 RUS3 No. of unskilled workers redundant Yr. 3
No. of semi-skilled downgraded to un skilled
DSSUS Yr.3 RSS2 No. of semi-skilled worker redundant Yr.3
No. of skilled worker downgraded to semi-
DSKSS3 skilled Yr.3 RSK3 No. of Skilled worker redundant Yr.3

Over Manning Short term worker

Variable Description Variable Description
OMUS1 No. of unskilled ovemanning in Yr 1 STUS1 No. of unskilled short term in Yr 1
No. of semi-skilled worker ovemanning in Yr No. of semi-skilled worker short term in
OMSS1 1 STSS1 Yr 1
OMSK1 No. of Skilled worker ovemanning Yr 1 STSK1 No. of Skilled worker short term Yr 1
OMUS2 No. of unskilled workers ovemanning Yr 2 STUS2 No. of unskilled workers short term Yr 2
OMSS2 No. of semi-skilled worker ovemanning Yr 2 STSS2 No. of semi-skilled worker short term Yr 2
OMSK2 No. of Skilled worker over manning Yr 2 STSK2 No. of Skilled worker short term Yr 2
OMUS3 No. of unskilled workers ovemanning Yr 3 STUS3 No. of unskilled workers short term Yr 3
OMSS2 No. of semi-skilled worker ovemanning Yr 3 STSS3 No. of semi-skilled worker short term Yr 3
OMSK3 No. of Skilled worker ovemanning Yr 3 STSK3 No. of Skilled worker short term Yr 3

Objective-

Minimizing manpower

Year 1- RUSSS1*400 + RSSSK1* 500 +RUS1 * 200 +RSS1 * 500 + RSK1 *500 + STUS1*500+
STSS1*400+STSK1*400+OMUS1*500+OMSS1*800+OMSK1*500

Year 2- RUSSS2*400 + RSSSK2* 500 +RUS2 * 200 +RSS2 * 500 + RSK2 *500 + STUS2*500+
STSS2*400+STSK2*400+OMUS2*500+OMSS2*800+OMSK2*500

Year 3- RUSSS3*400 + RSSSK3* 500 +RUS3 * 200 +RSS3 * 500 + RSK3 *500 + STUS3*500+
STSS3*400+STSK3*400+OMUS3*500+OMSS3*800+OMSK3*500

Constraints
No of workers in year 1

No of workers in year 1
WUS1 Unskilled 0.9*MUS+0.75 *MUSH1 - RUSSS1+ 0.5*DSSUS1-RUS1
WSS1 Semi-Skilled 0.95*MSS + 0.80*MSSH1-RSSSK1 + 0.5 * DSKSS1 -RSS1 +RUSS1 -DSSUS1
WSK1 Skilled 0.95*MSK + 0.9 * MSKH1 + RSSSK1 - DSKSS1
No of workers in year 2
WUS2 Unskilled 0.9*MUS1+0.75 *MUSH2 - RUSSS2+ 0.5*DSSUS2-RUS2
WSS2 Semi-Skilled 0.95*MSS1 + 0.80*MSSH2-RSSSK2 + 0.5 * DSKSS2 -RSS2 +RUSS2 -DSSUS2
WSK2 Skilled 0.95* MSK1 + 0.9 * MSKS2 + RSSK2 - DSKSS2
No of workers in year 3
WUS3 Unskilled 0.9*MUS2+0.75 *MUSH3 - RUSSS3+ 0.5*DSSUS3-RUS3
WSS3 Semi-Skilled 0.95*MSS2 + 0.80*MSSH3-RSSSK3 + 0.5 * DSKSS3 -RSS3 +RUSS3 -DSSUS3
WSK3 Skilled 0.95* MSK2 + 0.9 * MSKS3 + RSSK3 - DSKSS3

Retaining of Manpower
Unskilled to Semi-Skilled RUSSS1, RUSSS2, RUSSS3, less than or equal to 200
Semi-Skilled to Skilled RSSSK1,RSSSK2, RSSSK3 1/4 of STSK1, STSK2 and STSK3

Redundant

Ovemanning
OM1 OMUS1+OMSS1+OMSK1 = 150
OM2 OMUS2+OMSS2+OMSK2 = 150
OM3 OMUS3+OMSS3+OMSK3 = 150

Requirement Limitations
RUSK1 WUS1- OMUS1-05*STUS1 = 1000 No. of unskilled workers hired Yr.1 MUSH1 < = 500
RSSK1 WSS1- OMSS1-0.5*STSS1 = 1400 No. of semi-skilled worker hired Yr.1 MSSH1 < = 800
RSK1 WSK1- OMSK1-0.5*STSK1 = 1000 No. of Skilled worker hired Yr.1 MSKH1 < = 500
RUSK2 WUS2- OMUS2-05*STUS2 = 500 No. of unskilled workers hired Yr. 2 MUSH2 < = 500
RSSK2 WSS2- OMSS2-0.5*STSS2 = 2000 No. of semi-skilled worker hired Yr.2 MSSH2 < = 800
RSK2 WSK2- OMSK2-0.5*STSK2 = 1500 No. of Skilled worker hired Yr.2 MSKH2 < = 500
RUSK3 WUS3- OMUS3-05*STUS3 = 0 No. of unskilled workers hired Yr.3 MUSH3 < = 500
RSSK3 WSS3- OMSS3-0.5*STSS3 = 2500 No. of semi-skilled worker hired Yr.3 MSSH3 < = 800
RSK3 WSK3- OMSK3-0.5*STSK3 = 2000 No. of Skilled worker hired Yr. 3 MSKH3 < = 500

Limitations
No. of unskilled short term in y1 STUS1 < = 50
No. of semi-skilled worker short term in y1 STSS1 < = 50
No. of Skilled worker short term y1 STSK1 < = 50
No. of unskilled workers short term y 2 STUS2 < = 50
No. of semi-skilled worker short term y2 STSS2 < = 50
No. of Skilled worker short term y2 STSK2 < = 50
No. of unskilled workers short term y3 STUS3 < = 50
No. of semi-skilled worker short term y3 STSS3 < = 50
No. of Skilled worker short term y3 STSK3 < = 50

RUSSS1 < =
No. of unskilled redundant in y1 200
RUSSS2 < =
No. of unskilled workers redundant y2 200
RUSSS3 < =
No. of unskilled workers redundant y3 200

Solver Engine

Engine: Simplex LP

Solver Options

Max Time Unlimited, Iterations Unlimited, Precision 0.000001

Max Sub problems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume
Nonnegative

Original
Cell Name Value Final Value

$B$23 Minimize STSK1 325,000 325,000

Original
Cell Name Value Final Value Integer
$E$5 ≤ Nos 0 0 Contin
$E$6 ≤ Nos 0 0 Contin
$E$7 ≤ Nos 0 0 Contin
$E$8 ≤ Nos 200 200 Contin
$E$9 1/4 of Skilled workers Nos 50 50 Contin
 Number of semi-skilled downgraded to un skilled yr
$E$10 1 Nos 150 150 Contin
Number of skilled worker downgraded to semi-
$E$11 skilled yr1 Nos 0 0 Contin
$E$12 Number of unskilled redundant in yr 1 Nos 500 500 Contin
$E$13 Number of semi-skilled worker redundant in y1 Nos 0 0 Contin
$E$14 number of Skilled worker redundant y1 Nos 0 0 Contin
$E$15 ≤ Nos 150 150 Contin
$E$16 ≤ Nos 0 0 Contin
$E$17 ≤ Nos 0 0 Contin
$E$18 ≤ Nos 50 50 Contin
$E$19 ≤ Nos 50 50 Contin
$E$20 ≤ Nos 0 0 Contin

Constraints

Cell Name Cell Value Formula Status Slack

$C$35 Minimize RSSSK1 100000 $C$35<=$E$35 Binding 0
$C$37 OMUS1+OMSS1+OMSK1 = 150 RSSSK1 150 $C$37<=$E$37 Binding 0
$C$40 WUS1- OMUS1-05*STUS1 = 1000 RSSSK1 1000 $C$40=$E$40 Binding 0
$C$41 WSS1- OMSS1-0.5*STSS1 = 1400 RSSSK1 1400 $C$41=$E$41 Binding 0
$C$42 WSK1- OMSK1-0.5*STSK1 = 1000 RSSSK1 1000 $C$42=$E$42 Binding 0
Not
$C$44 MUSH1 < = 500 RSSSK1 0 $C$44<=$E$44 Binding 500
Not
$C$45 MSSH1 < = 800 RSSSK1 0 $C$45<=$E$45 Binding 800
Not
$C$46 MSKH1 < = 500 RSSSK1 0 $C$46<=$E$46 Binding 500
$C$47 STUS1 < = 50 RSSSK1 50 $C$47<=$E$47 Binding 0
$C$48 STSS1 < = 50 RSSSK1 50 $C$48<=$E$48 Binding 0
Not
$C$49 STSK1 < = 50 RSSSK1 0 $C$49<=$E$49 Binding 50
Not
$E$9 1/4 of Skilled workers Nos 50 $E$9<=$E$32 Binding 200
$E$8 ≤ Nos 200 $E$8<=200 Binding 0

Sensitivity Report

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$E$5 ≤ Nos 0 1200 0 1E+30 1200
 $E$6 ≤ Nos 0 640 0 1E+30 640
$E$7 ≤ Nos 0 240 0 1E+30 240
$E$8 ≤ Nos 200 -400 400 400 1E+30
$E$9 1/4 of Skilled workers Nos 50 0 500 300 100
Number of semi-skilled downgraded to
$E$10 un skilled yr 1 Nos 150 0 0 200 1E+30
Number of skilled worker downgraded
$E$11 to semi-skilled yr1 Nos 0 100 0 1E+30 100
Number of unskilled redundant in yr 1
$E$12 Nos 500 0 200 1280 1E+30
Number of semi-skilled worker
$E$13 redundant in y1 Nos 0 3200 500 1E+30 3200
number of Skilled worker redundant y1
$E$14 Nos 0 3700 500 1E+30 3700
$E$15 ≤ Nos 150 0 500 1100 1E+30
$E$16 ≤ Nos 0 1100 800 1E+30 1100
$E$17 ≤ Nos 0 1300 500 1E+30 1300
$E$18 ≤ Nos 50 0 500 300 1E+30
$E$19 ≤ Nos 50 0 400 100 150
$E$20 ≤ Nos 0 250 400 1E+30 250

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$35 Minimize RSSSK1 100000 -7 100000 2500 0
$C$37 OMUS1+OMSS1+OMSK1 = 150 RSSSK1 150 -1100 150 12.5 0
$C$40 WUS1- OMUS1-05*STUS1 = 1000 RSSSK1 1000 -1600 1000 12.5 0
$C$41 WSS1- OMSS1-0.5*STSS1 = 1400 RSSSK1 1400 -800 1400 25 0
$C$42 WSK1- OMSK1-0.5*STSK1 = 1000 RSSSK1 1000 -300 1000 25 0
$C$44 MUSH1 < = 500 RSSSK1 0 0 500 1E+30 500
$C$45 MSSH1 < = 800 RSSSK1 0 0 800 1E+30 800
$C$46 MSKH1 < = 500 RSSSK1 0 0 500 1E+30 500
$C$47 STUS1 < = 50 RSSSK1 50 -300 50 25 0
$C$48 STSS1 < = 50 RSSSK1 50 0 50 1E+30 0
$C$49 STSK1 < = 50 RSSSK1 0 0 50 1E+30 50
$E$9 1/4 of Skilled workers Nos 50 0 0 1E+30 200

Limits Report

Objective
Cell Name Value

$B$23 Minimize STSK1 325,000

 Variable Lower Objective Upper Objective
Cell Name Value Limit Result Limit Result
$E$5 ≤ Nos 0 0 325000 0 325000
$E$6 ≤ Nos 0 0 325000 0 325000
$E$7 ≤ Nos 0 0 325000 0 325000
$E$8 ≤ Nos 200 200 325000 200 325000
$E$9 1/4 of Skilled workers Nos 50 50 325000 50 325000
Number of semi-skilled downgraded to un
$E$10 skilled yr 1 Nos 150 150 325000 150 325000
Number of skilled worker downgraded to
$E$11 semi-skilled yr1 Nos 0 0 325000 0 325000
$E$12 Number of unskilled redundant in yr 1 Nos 500 500 325000 500 325000
Number of semi-skilled worker redundant in
$E$13 y1 Nos 0 0 325000 0 325000
$E$14 number of Skilled worker redundant y1 Nos 0 0 325000 0 325000
$E$15 ≤ Nos 150 150 325000 150 325000
$E$16 ≤ Nos 0 0 325000 0 325000
$E$17 ≤ Nos 0 0 325000 0 325000
$E$18 ≤ Nos 50 50 325000 50 325000
$E$19 ≤ Nos 50 50 325000 50 325000
$E$20 ≤ Nos 0 0 325000 0 325000

Year 1

Definition Variable Description Nos Cost

Actual manpower
required MUS No. of unskilled worker in base Year = 2000
Actual manpower
required MSS No. of semi-skilled worker in a base Year = 1500
Actual manpower
required MSK No. of skilled worker in a base Year = 1000
Manpower Hiring MUSH1 No. of unskilled workers hired Year 1 ≤ 0
Manpower Hiring MSSH1 No. of semi-skilled worker hired Year 1 ≤ 0
Manpower Hiring MSKH1 No. of Skilled worker hired Year 1 ≤ 0
Retraining of manpower RUSSS1 No. of unskilled trained to Semi-Skilled Year 1 ≤ 200 400
1/4 of
Skilled
Retraining of manpower RSSSK1 No. of semi-skilled trained to skilled worker Year 1 workers 50 500
Downgrading the
workforce DSSUS1 No. of semi-skilled downgraded to un skilled Year 1 150
Downgrading the
workforce DSKSS1 No. of skilled worker downgraded to semi-skilled Year 1 0
Redundancy RUS1 No. of unskilled redundant in Year 1 500 200
Redundancy RSS1 No. of semi-skilled worker redundant in Year 1 0 500
Redundancy RSK1 No. of Skilled worker redundant Year 1 0 500
Over Manning OMUS1 No. of unskilled ovemanning in Year 1 ≤ 150 500
Over Manning OMSS1 No. of semi-skilled worker ovemanning in Year 1 ≤ 0 800
Over Manning OMSK1 No. of Skilled worker ovemanning Year 1 ≤ 0 500
Short term worker STUS1 No. of unskilled short term in Year 1 ≤ 50 500
Short term worker STSS1 No. of semi-skilled worker short term in Year 1 ≤ 50 400
Short term worker STSK1 No. of Skilled worker short term Year 1 ≤ 0 400

Objective
Minimize 325,000

Constraints
Old Workers
Unskilled (WUS1) 1175
Semi-Skilled (WSS1) 1425
Skilled (WSK1) 1000
Retaining
Unskilled to Semi-skilled RUSSS1 ≤ 200
Semi-skilled to skilled RSSSK1 ≤ 250

Redundant
Minimize 100000 = 100000
Ovemanning
OM1 OMUS1+OMSS1+OMSK1 = 150 150 ≤ 150

Requirement
RUSK1 WUS1- OMUS1-05*STUS1 = 1000 1000 = 1000
RSSK1 WSS1- OMSS1-0.5*STSS1 = 1400 1400 = 1400
RSK1 WSK1- OMSK1-0.5*STSK1 = 1000 1000 = 1000
Limitation
MUSH1 < = 500 0 ≤ 500
MSSH1 < = 800 0 ≤ 800
MSKH1 < = 500 0 ≤ 500
STUS1 < = 50 50 ≤ 50
STSS1 < = 50 50 ≤ 50
STSK1 < = 50 0 ≤ 50

Year 2- Solver Engine - GRG Nonlinear

Solver Options

Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require
Bounds
Max sub problems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume
nonnegative.

Objective Cell (Min)

Original
Cell Name Value Final Value

$B$23 Minimize STSK2 217,500 217,500

Variable Cells

Original
Cell Name Value Final Value Integer
$E$5 ≤ Nos 0 0 Contin
$E$6 ≤ Nos 775 775 Contin
$E$7 ≤ Nos 500 500 Contin
$E$8 ≤ Nos 200 200 Contin
$E$9 1/4 of Skilled workers Nos 150 150 Contin
$E$10 Number of semi-skilled downgraded to un skilled yr 2 Nos 0 0 Contin
Number of skilled worker downgraded to semi-skilled yr2
$E$11 Nos 0 0 Contin
$E$12 Number of unskilled workers redundant yr 2 Nos 125 125 Contin
$E$13 Number of semi-skilled worker redundant y2 Nos 0 0 Contin
$E$14 number of Skilled worker redundant y2 Nos 0 0 Contin
$E$15 ≤ Nos 75 75 Contin
$E$16 ≤ Nos 0 0 Contin
$E$17 ≤ Nos 0 0 Contin
$E$18 ≤ Nos 0 0 Contin
$E$19 ≤ Nos 0 0 Contin
$E$20 ≤ Nos 0 0 Contin

Constraints

Cell
Cell Name Value Formula Status Slack
Unskilled to Semi-skilled number of Skilled worker
$C$31 short termy2 200 $C$31<=$E$31 Binding 0
Semi-skilled to Skilled number of Skilled worker Not
$C$32 short termy2 150 $C$32<=$E$32 Binding 225
$C$35 Minimize number of Skilled worker short termy2 25000 $C$35<=$E$35 Binding 0
OMUS1+OMSS1+OMSK1 = 150 number of Skilled Not
$C$37 worker short termy2 75 $C$37<=$E$37 Binding 75
WUS1- OMUS1-05*STUS1 = 500 number of Skilled
$C$40 worker short termy2 500 $C$40=$E$40 Binding 0
$C$41 WSS1- OMSS1-0.5*STSS1 = 2000 number of Skilled 2000 $C$41=$E$41 Binding 0
 worker short termy2
WSK1- OMSK1-0.5*STSK1 = 1500 number of Skilled
$C$42 worker short termy2 1500 $C$42=$E$42 Binding 0
MUSH1 < = 500 number of Skilled worker short Not
$C$44 termy2 0 $C$44<=$E$44 Binding 500
MSSH1 < = 800 number of Skilled worker short Not
$C$45 termy2 775 $C$45<=$E$45 Binding 25
MSKH1 < = 500 number of Skilled worker short
$C$46 termy2 500 $C$46<=$E$46 Binding 0
STUS1 < = 50 number of Skilled worker short Not
$C$47 termy2 0 $C$47<=$E$47 Binding 50
STSS1 < = 50 number of Skilled worker short Not
$C$48 termy2 0 $C$48<=$E$48 Binding 50
STSK1 < = 50 number of Skilled worker short Not
$C$49 termy2 0 $C$49<=$E$49 Binding 50

Sensitivity Report

Variable Cells

Final Reduced
Cell Name Value Gradient
$E$5 ≤ Nos 0 375.0000
$E$6 ≤ Nos 775 0.0000
$E$7 ≤ Nos 500 0.0000
$E$8 ≤ Nos 200 0.0000
$E$9 1/4 of Skilled workers Nos 150 0.0000
$E$10 Number of semi-skilled downgraded to un skilled yr 2 Nos 0 250.0000
$E$11 Number of skilled worker downgraded to semi-skilled yr2 Nos 0 500.0000
$E$12 Number of unskilled workers redundant yr 2 Nos 125 0.0000
$E$13 Number of semi-skilled worker redundant y2 Nos 0 1249.9999
$E$14 number of Skilled worker redundant y2 Nos 0 1249.9999
$E$15 ≤ Nos 75 0.0000
$E$16 ≤ Nos 0 800.0000
$E$17 ≤ Nos 0 1000.0000
$E$18 ≤ Nos 0 250.0000
$E$19 ≤ Nos 0 400.0000
$E$20 ≤ Nos 0 649.9999

Constraints

Final Lagrange
 Cell Name Value Multiplier
-
$C$31 Unskilled to Semi-skilled number of Skilled worker short termy2 200 99.99999801
$C$32 Semi-skilled to Skilled number of Skilled worker short termy2 150 0
-
$C$35 Minimize number of Skilled worker short termy2 25000 1.499999949
$C$37 OMUS1+OMSS1+OMSK1 = 150 number of Skilled worker short termy2 75 0
-
$C$40 WUS1- OMUS1-05*STUS1 = 500 number of Skilled worker short termy2 500 499.9999891
$C$41 WSS1- OMSS1-0.5*STSS1 = 2000 number of Skilled worker short termy2 2000 0
$C$42 WSK1- OMSK1-0.5*STSK1 = 1500 number of Skilled worker short termy2 1500 500.0000015
$C$44 MUSH1 < = 500 number of Skilled worker short termy2 0 0
$C$45 MSSH1 < = 800 number of Skilled worker short termy2 775 0
-
$C$46 MSKH1 < = 500 number of Skilled worker short termy2 500 400.0000221
$C$47 STUS1 < = 50 number of Skilled worker short termy2 0 0
$C$48 STSS1 < = 50 number of Skilled worker short termy2 0 0
$C$49 STSK1 < = 50 number of Skilled worker short termy2 0 0

Limits Report

Objective
Cell Name Value

$B$23 Minimize STSK2 217,500

Variable Lower Objective Upper Objective

Cell Name Value Limit Result Limit Result
$E$5 ≤ Nos 0 0 217500 0 217500
$E$6 ≤ Nos 775 775 217500 775 217500
$E$7 ≤ Nos 500 500 217500 500 217500
$E$8 ≤ Nos 200 200 217500 200 217500
$E$9 1/4 of Skilled workers Nos 150 150 217500 150 217500
Number of semi-skilled downgraded to un skilled
$E$10 yr 2 Nos 0 0 217500 0 217500
Number of skilled worker downgraded to semi-
$E$11 skilled yr2 Nos 0 0 217500 0 217500
$E$12 Number of unskilled workers redundant yr 2 Nos 125 125 217500 125 217500
$E$13 Number of semi-skilled worker redundant y2 Nos 0 0 217500 0 217500
$E$14 number of Skilled worker redundant y2 Nos 0 0 217500 0 217500
$E$15 ≤ Nos 75 75 217500 75 217500
$E$16 ≤ Nos 0 0 217500 0 217500
$E$17 ≤ Nos 0 0 217500 0 217500
$E$18 ≤ Nos 0 0 217500 0 217500
$E$19 ≤ Nos 0 0 217500 0 217500
$E$20 ≤ Nos 0 0 217500 0 217500
Year 2

Definition Variable Description Nos Cost

Actual manpower
required MUS1 No. of unskilled worker in a Yr 1 = 1000
Actual manpower
required MSS1 No. of semi-skilled worker in a Yr 1 = 1400
Actual manpower
required MSK1 No. of skilled worker in a Tear 1 = 1000
Manpower Hiring MUSH2 No. of unskilled workers hired Yr 2 ≤ 0
Manpower Hiring MSSH2 No. of semi-skilled worker hired Yr 2 ≤ 775
Manpower Hiring MSKH2 No. of Skilled worker hired Yr 2 ≤ 500
Retraining of
manpower RUSSS2 No. of unskilled trained to Semi-Skilled Yr 2 ≤ 200 400
1/4 of
Retraining of No. of semi-skilled trained to skilled worker Yr Skilled
manpower RSSSK2 2 workers 150 500
Downgrading the No. of semi-skilled downgraded to un skilled
workforce DSSUS2 Yr 2 0
Downgrading the No. of skilled worker downgraded to semi-
workforce DSKSS2 skilled Yr 2 0
Redundancy RUS2 No. of unskilled workers redundant Yr 2 125 200
Redundancy RSS2 No. of semi-skilled worker redundant Yr 2 0 500
Redundancy RSK2 No. of Skilled worker redundant Yr 2 0 500
Over Manning OMUS2 No. of unskilled workers ovemanning Yr 2 ≤ 75 500
Over Manning OMSS2 No. of semi-skilled worker ovemanning Yr 2 ≤ 0 800
Over Manning OMSK2 No. of Skilled worker over manning Yr 2 ≤ 0 500
Short term worker STUS2 No. of unskilled workers short term Yr 2 ≤ 0 500
Short term worker STSS2 No. of semi-skilled worker short term Yr 2 ≤ 0 400
Short term worker STSK2 No. of Skilled worker short term Yr 2 ≤ 0 400

Objective
Minimize 217,500

Constraints
Old Workers
Unskilled (WUS1) 575
Semi-Skilled (WSS1) 2000
Skilled (WSK1) 1500
Retaining
Unskilled to Semi-skilled 200 ≤ 200
Semi-skilled to Skilled 150 ≤ 375
Redundant
Minimize 25000 = 25000
Ovemanning
OM1 OMUS1+OMSS1+OMSK1 = 150 75 ≤ 150

Requirement
RUSK1 WUS1- OMUS1-05*STUS1 = 500 500 = 500
RSSK1 WSS1- OMSS1-0.5*STSS1 = 2000 2000 = 2000
RSK1 WSK1- OMSK1-0.5*STSK1 = 1500 1500 = 1500
Limitation
MUSH1 < = 500 0 ≤ 500
MSSH1 < = 800 775 ≤ 800
MSKH1 < = 500 500 ≤ 500
STUS1 < = 50 0 ≤ 50
STSS1 < = 50 0 ≤ 50
STSK1 < = 50 0 ≤ 50

Year 3 Solver Engine - Simplex LP

Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic
Scaling

Max Sub problems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%,
Assume Nonnegative

Objective Cell (Min)

Original
Cell Name Value Final Value

$B$23 Minimize STSK3 217,500 217,500

Variable Cells

Original Final
Cell Name Value Value Integer
$E$5 ≤ Nos 0 0 Contin
$E$6 ≤ Nos 719 719 Contin
$E$7 ≤ Nos 500.000001 500 Contin
$E$8 ≤ Nos 200 200 Contin
 $E$9 1/4 of Skilled workers Nos 174.9999994 175 Contin
$E$10 Number of semi-skilled downgraded to un skilled Year 3 Nos 0 0 Contin
Number of skilled worker downgraded to semi-skilled Year3
$E$11 Nos 0 0 Contin
$E$12 Number of unskilled workers redundant Year 3 Nos 250 250 Contin
$E$13 Number of semi-skilled worker redundant Year 3 Nos 0 0 Contin
$E$14 Number of Skilled worker redundant Year 3 Nos 0 0 Contin
$E$15 ≤ Nos 0 0 Contin
$E$16 ≤ Nos 0 0 Contin
$E$17 ≤ Nos 0 0 Contin
$E$18 ≤ Nos 0 0 Contin
$E$19 ≤ Nos 0 0 Contin
$E$20 ≤ Nos 0 0 Contin

Constraints

Cell
Cell Name Value Formula Status Slack
Unskilled to Semi-skilled No. of Skilled worker short
$C$31 term Year 3 200 $C$31<=$E$31 Binding 0
Semi-skilled to Skilled No. of Skilled worker short Not
$C$32 term Year 3 175 $C$32<=$E$32 Binding 325
$C$35 Minimize No. of Skilled worker short term Year 3 50000 $C$35<=$E$35 Binding 0
OMUS1+OMSS1+OMSK1 = 150 No. of Skilled Not
$C$37 worker short term Year 3 0 $C$37<=$E$37 Binding 150
WUS1- OMUS1-05*STUS1 = 0 No. of Skilled worker
$C$40 short term Year 3 0 $C$40=$E$40 Binding 0
WSS1- OMSS1-0.5*STSS1 = 2500 No. of Skilled
$C$41 worker short term Year 3 2500 $C$41=$E$41 Binding 0
WSK1- OMSK1-0.5*STSK1 = 2000 No. of Skilled
$C$42 worker short term Year 3 2000 $C$42=$E$42 Binding 0
MUSH1 < = 500 No. of Skilled worker short term Not
$C$44 Year 3 0 $C$44<=$E$44 Binding 500
MSSH1 < = 800 No. of Skilled worker short term Not
$C$45 Year 3 719 $C$45<=$E$45 Binding 81.25
MSKH1 < = 500 No. of Skilled worker short term
$C$46 Year 3 500 $C$46<=$E$46 Binding 0
STUS1 < = 50 No. of Skilled worker short term Year Not
$C$47 3 0 $C$47<=$E$47 Binding 50
Not
$C$48 STSS1 < = 50 No. of Skilled worker short term Year 3 0 $C$48<=$E$48 Binding 50
STSK1 < = 50 No. of Skilled worker short term Year Not
$C$49 3 0 $C$49<=$E$49 Binding 50

Sensitivity Report
Variable Cells

Reduc Objectiv Allowab Allowab

Final ed e le le
Valu Coefficie Increas Decreas
Cell Name e Cost nt e e
$E$5 ≤ Nos 0 300 0 1E+30 300
718.7
$E$6 ≤ Nos 5 0 0 160 80
$E$7 ≤ Nos 500 0 0 400 1E+30
$E$8 ≤ Nos 200 0 400 100 200
$E$9 1/4 of Skilled workers Nos 175 0 500 1E+30 500
$E$1 Number of semi-skilled downgraded to
0 un skilled Year 3 Nos 0 200 0 1E+30 200
$E$1 Number of skilled worker downgraded to
1 semi-skilled Year3 Nos 0 500 0 1E+30 500
$E$1 Number of unskilled workers redundant
2 Year 3 Nos 250 0 200 200 1E+30
$E$1 Number of semi-skilled worker redundant
3 Year 3 Nos 0 1000 500 1E+30 1000
$E$1 Number of Skilled worker redundant Year
4 3 Nos 0 1000 500 1E+30 1000
$E$1
5 ≤ Nos 0 100 500 1E+30 100
$E$1
6 ≤ Nos 0 800 800 1E+30 800
$E$1
7 ≤ Nos 0 1000 500 1E+30 1000
$E$1
8 ≤ Nos 0 300 500 1E+30 300
$E$1
9 ≤ Nos 0 400 400 1E+30 400
$E$2
0 ≤ Nos 0 650 400 1E+30 650

Constraints
Shado Constrai Allowab Allowab
Final w nt le le
Valu R.H. Increas Decreas
Cell Name e Price Side e e
$C$3 Unskilled to Semi-skilled No. of Skilled
1 worker short term Year 3 200 0 200 1E+30 0
$C$3 Semi-skilled to Skilled No. of Skilled 175 0 0 1E+30 325
 2 worker short term Year 3
$C$3 Minimize No. of Skilled worker short term 5000
5 Year 3 0 -1 50000 13000 0
$C$3 OMUS1+OMSS1+OMSK1 = 150 No. of
7 Skilled worker short term Year 3 0 0 150 1E+30 150
$C$4 WUS1- OMUS1-05*STUS1 = 0 No. of Skilled
0 worker short term Year 3 0 -400 0 65 0
$C$4 WSS1- OMSS1-0.5*STSS1 = 2500 No. of
1 Skilled worker short term Year 3 2500 0 2500 65 575
$C$4 WSK1- OMSK1-0.5*STSK1 = 2000 No. of
2 Skilled worker short term Year 3 2000 500 2000 65 175
$C$4 MUSH1 < = 500 No. of Skilled worker short
4 term Year 3 0 0 500 1E+30 500
$C$4 MSSH1 < = 800 No. of Skilled worker short 718.7
5 term Year 3 5 0 800 1E+30 81.25
$C$4 MSKH1 < = 500 No. of Skilled worker short
6 term Year 3 500 -400 500 218.75 81.25
$C$4 STUS1 < = 50 No. of Skilled worker short
7 term Year 3 0 0 50 1E+30 50
$C$4 STSS1 < = 50 No. of Skilled worker short
8 term Year 3 0 0 50 1E+30 50
$C$4 STSK1 < = 50 No. of Skilled worker short
9 term Year 3 0 0 50 1E+30 50

Limits Report

Objective
Cell Name Value

$B$23 Minimize STSK3 217,500

Objectiv Objectiv
Variable Lower e Upper e
Valu
Cell Name e Limit Result Limit Result
$E$5 ≤ Nos 0 0 217500 0 217500
$E$6 ≤ Nos 719 719 217500 719 217500
$E$7 ≤ Nos 500 500 217500 500 217500
$E$8 ≤ Nos 200 200 217500 200 217500
$E$9 1/4 of Skilled workers Nos 175 175 217500 175 217500
$E$1 Number of semi-skilled downgraded
0 to un skilled Year 3 Nos 0 0 217500 0 217500
$E$1 Number of skilled worker downgraded - -
1 to semi-skilled Year3 Nos 0 6.54836 217500 6.54836 217500
 E-11 E-11
$E$1 Number of unskilled workers
2 redundant Year 3 Nos 250 250 217500 250 217500
$E$1 Number of semi-skilled worker 3.27418 3.27418
3 redundant Year 3 Nos 0 E-11 217500 E-11 217500
$E$1 Number of Skilled worker redundant
4 Year 3 Nos 0 0 217500 0 217500
$E$1
5 ≤ Nos 0 0 217500 0 217500
$E$1 3.27418 3.27418
6 ≤ Nos 0 E-11 217500 E-11 217500
$E$1 2.27374 2.27374
7 ≤ Nos 0 E-11 217500 E-11 217500
$E$1
8 ≤ Nos 0 0 217500 0 217500
$E$1 6.54836 6.54836
9 ≤ Nos 0 E-11 217500 E-11 217500
$E$2 4.54747 4.54747
0 ≤ Nos 0 E-11 217500 E-11 217500

Definition Variable Description Nos Cost

Actual manpower
required MUS2 No. of unskilled worker in a Year 2 = 500
Actual manpower
required MSS2 No. of semi-skilled worker in a Year 2 = 2000
Actual manpower
required MSK2 No. of skilled worker in a Year 2 = 1500
Manpower Hiring MUSH3 No. of unskilled workers hired Year 3 ≤ 0
Manpower Hiring MSSK3 No. of semi-skilled worker hired Year 3 ≤ 719
Manpower Hiring MSKH3 No. of Skilled worker hired Year 3 ≤ 500
Retraining of
manpower RUSSS3 No. of unskilled trained to Semi Skilled Year 3 ≤ 200 400
1/4 of
Retraining of No. of semi-skilled trained to skilled worker Skilled
manpower RUSSSK3 Year 3 workers 175 500
Downgrading the No. of semi-skilled downgraded to un skilled
workforce DSSUS Year 3 0
Downgrading the No. of skilled worker downgraded to semi-
workforce DSKSS3 skilled Year3 0
Redundancy RUS3 No. of unskilled workers redundant Year 3 250 200
Redundancy RSS2 No. of semi-skilled worker redundant Year 3 0 500
Redundancy RSK3 No. of Skilled worker redundant Year 3 0 500
Over Manning OMUS3 No. of unskilled workers ovemanning Year 3 ≤ 0 500
Over Manning OMSS2 No. of semi-skilled worker ovemanning Year 3 ≤ 0 800
Over Manning OMSK3 No. of Skilled worker ovemanning Year 3 ≤ 0 500
Short term worker STUS3 No. of unskilled workers short term Year 3 ≤ 0 500
Short term worker STSS3 No. of semi-skilled worker short term Year 3 ≤ 0 400
Short term worker STSK3 No. of Skilled worker short term Year 3 ≤ 0 400

Constraints
Old Workers
Un skilled (US1) 0
Semi-Skilled (SS1) 2500
Skilled (S1) 2000
Retaining
Unskilled to Semi-skilled 200 ≤ 200
Semi-skilled to Skilled 175 ≤ 500

Redundant
Minimize 50000 = 50000
Overmanning
OM1 OMUS1+OMSS1+OMSK1 = 150 0 ≤ 150

Requirement
RUSK1 WUS1- OMUS1-05*STUS1 = 0 0 = 0
RSSK1 WSS1- OMSS1-0.5*STSS1 = 2500 2500 = 2500
RSK1 WSK1- OMSK1-0.5*STSK1 = 2000 2000 = 2000
Limitation
MUSH1 < = 500 0 ≤ 500
MSSH1 < = 800 719 ≤ 800
MSKH1 < = 500 500 ≤ 500
STUS1 < = 50 0 ≤ 50
STSS1 < = 50 0 ≤ 50
STSK1 < = 50 0 ≤ 50

Summary

Number of workers Hired Redundancy Total cost

US SS S US SS S
Yr 1 0 0 0 500 0 0 325,000
Yr 2 0 775 500 125 0 0 217,500
Yr 3 0 719 500 250 0 0 217,500
760,000