January February March April May

Option 1 A1 A2 A3 A4 A5
B1 B2 B3 B4 B5
Option 2
B1 B2 B3 B4
C1 C2 C3 C4
Option 3 C1 C2 C3 C4
C1 C2 C3

>= >= >= >= >=

Minimum Labour
Requirement 10 23 19 26 20

A
January February March April May
Option 1 0 4 0 0 3
0 0 0 3 0
Option 2
0 0 0 3
10 9 0 14
Option 3 10 9 0 14
10 9 0
10 23 19 26 20

>= >= >= >= >=

Minimum Labour
Requirement 10 23 19 26 20

Contract Cost Training Cost Total Contract Total Training

Option No. of Employees per Employee per Employee Cost Cost
1 7 2000 875 14000 6125
2 3 4800 875 14400 2625
3 33 7500 875 247500 28875
43 275900 37625

C
January February March April May
Option 1 10 23 19 26 20
0 0 0 0 0
Option 2
0 0 0 0
0 0 0 0
Option 3 0 0 0 0
0 0 0
 10 23 19 26 20

>= >= >= >= >=

10 23 19 26 20

D
January February March April May
Option 1 0 4 0 0 3
0 0 0 3 0
Option 2
0 0 0 3
0 9 0 4
Option 3 0 9 0 4
0 9 0
0 13 9 16 10

>= >= >= >= >=

0 13 9 16 10

No. of fixed
employees 10
Cost per hour 16.5
No. of hours per
month 168
No. of months 6
Total Cost of Fixed
Employees 166320
Total Cost of
Temporary
Employees 146025
Total Cost 312345

Difference -1180 Hence, he should hire 10 full-time employees as it will reduce the cost by
June Cost
A6 Option 1 2875 (Including training cost of 875)
Option 2 5675 (Including training cost of 875)
B5 Option 3 8375 (Including training cost of 875)

C4

>=

14

June
0 7
3
0

33
14
14

>=

14 Total Cost 313525

June Cost
14 112 Option 1 2700 Including training cost of 700
Option 2 5500 Including training cost of 700
0
0 Option 3 8200 Including training cost of 700

0
0
 14

>=

14 Total Cost 302400

June Cost
0 7 Option 1 2875 Including training cost of 875
Option 2 5675 Including training cost of 875
3
0 Option 3 8375 Including training cost of 875

13
4
4

>=

4 Total Cost 146025

it will reduce the cost by 1180 as compared to option A