Davis Instruments has two manufacturing plants located in Atlanta, Georgia.

Prod
Recently Davis started hiringtemporary workers supplied by WorkForce Unlimited
WorkForce Unlimited offered to provide temporary employeesunder three contra
The three options are summarized:

Managerial Report

The decision variables used in this case problem:-

(o) = Number of months hired - 1, 2, 3
(m)= Hired in month of- Jan (1), Feb (2),
E = Number of employees hired
(Eom) = Number of temporary employe

Therefore,
Months
Number of months hired (M) 1
Number of months hired (M) 2
Number of months hired (M) 3

Objective Function:

Minimize: (Option 1 Cost x

(Option 2 Cost x All Possi
(Option 3 Cost x All Poss

Minimize: 2875(E11+E12+
5675(E21+E22+E23+E24
8375(E31+E32+E33+E34
 One Constraint is required for each of the six months

Constraint 1
Need 10 additional employees in Janua
E11= number of temporary employees
E21= number of temporary employees
E31= number of temporary employees
E11+E21+E31=10

Constraint 2
Need 23 additional employees in Febru
E12, E22 and E32 are the number of te
hired under Option 2 or Option 3 in Jan
E12 + E22 + E32 + E21 + E31 = 23

Constraint 3
Need 19 additional employees in Marc
E13 + E23 + E33 + E31 + E22 + E32

Constraint 4
Need 26 additional employees in Apri
E14 + E24 + E34 + E32 + E23 + E33

Constraint 5
Need 20 additional employees in May
E15 + E25 + E35 + E33 +E24 + E34

Constraint 6
Need 14 additional employees in June
E16 + E26 + E36 + E34 + E25 + E35

Non-Negativity Constraint
(Eom) >= 0

Question 1.) A Schedule that shows the number of temporary employees that Davis should hire each
 January February
Option 1 0 4
Option 2 0 0
Option 3 10 9

Training
Option 1 875
Option 2 875
Option 3 875

January February
Option 1 2000 2000
Option 2 4800 4800
Option 3 7500 7500

January February
Option 1 0 4
Option 2 0 0
Option 3 10 9
10 23
Sign = =
Requirement 10 23

Cost Miminization 313525

Question 2.) A summary table that shows the number of temporary employees that Davis should hir
Provide summary totals showing the total number of temporary employees hired, tota

Training Contract
Option 1 875 2000
Option 2 875 4800
Option 3 875 7500
Total

Question 3.) If the cost to train each temporary employee could be reduced to $700 per month, wha
Discuss the implications that this effect on the hiring plan has for identifying methods f
How much of a reduction in training costs would be required to change the hiring plan

Resolving the LPP with the reduc

specifically to meet each months
Training thus the monthly hire schedule w
Option 1 700 January=10
February=23
March=19
April=26
May=20
June=14
 Resolving the LPP with the reduc
specifically to meet each months

thus the monthly hire schedule w

January=10
Option 2 700 February=23
Option 3 700 March=19
April=26
May=20
June=14

If training costs were any lower,

January February
Option 1 2000 2000
Option 2 4800 4800
Option 3 7500 7500

January February
Option 1 10 23
Option 2 0 0
Option 3 0 0
10 23
Sign = =
Requirement 10 23

January February
Option 1 0 4
Option 2 0 0
Option 3 10 9

Cost Miminization 302400

We can see that the total cost of the plan reduced to $302400 in comparison to $31352
A training cost of $700 per temporary employee would recommend Davis Instruments
If the training cost kept getting lower, option 1 would still be the vital option to choose

Question 4.) Suppose that Davis hired 10 full-time employees at the beginning of January in order to
If Davis can hire full-time employees for $16.50 per hour, including fringe benefits, wha
Assume that full-time and temporary employees both work approximately 160 hours p

January February
Option 1 2000 2000
Option 2 4800 4800
Option 3 7500 7500
 January February
Option 1 0 4
Option 2 0 0
Option 3 0 9
0 13
= =
Requirement 0 13

Temporary employee hiring cost 125900

Temporary employee training cost 20125
Total temporary employee costs 146025
Full-time employees hire cost 158400
Full-time employees traaining Cost 8750
Full-time employees Cost 167150
Total employee cost 313175

Hired
10
23
19
26
20
14

Davis Instruments should not continue to contract with WorkForce for temporary empl
Hiring 10 full-time employees ($313,175) compared to hiring temporary employees ($3
Davis Instruments will save more money by hiring 10 full-time employees by $350 and
 Workforce Scheduling
s located in Atlanta, Georgia. Product demand varies considerably from month to month, causing Davis extreme difficulty in
s supplied by WorkForce Unlimited, a company that specializes in providing temporaryemployees for firms in the greater At
rary employeesunder three contract options that differ in terms of the length of employment and the cost.

Option Length of Employment

1 One Month
2 Two Months
3 Three Months

anagerial Report
Total Costs = Contract Cost + Training Cost

Option Contract Cost Training Cost Total Cost

1 $2000 $875 $2875
2 $4800 $875 $5675
3 $7500 $875 $8375

ed in this case problem:-

= Number of months hired - 1, 2, 3
)= Hired in month of- Jan (1), Feb (2), Mar (3), April (4), May (5), June (6)
Number of employees hired
om) = Number of temporary employees hired under option o(o = 1, 2, 3) in month m(m = 1 forJanuary,m= 2 for February and so on)

Jan (1) Feb (2) Mar (2) Apr (3)

E11 E12 E13 E14
E21 E22 E23 E24
E31 E32 E33 E34

Objective Function:

Minimize: (Option 1 Cost x All Possible Option 1)+

(Option 2 Cost x All Possible Option 2)+
(Option 3 Cost x All Possible Option 3)

Minimize: 2875(E11+E12+E13+E14+E15+E16)+
5675(E21+E22+E23+E24+E25+E26)+
8375(E31+E32+E33+E34+E35+E36)
d for each of the six months

d 10 additional employees in January

number of temporary employees hired under Option 1 (one-month contract) in January
number of temporary employees hired under Option 2 (two-month contract) in January
number of temporary employees hired under Option 3 (three-month contract) in January Jan.
11+E21+E31=10

d 23 additional employees in February

E22 and E32 are the number of temporary employees hired under Options 1, 2 and 3 in February. However, temporary emp
d under Option 2 or Option 3 in January will also be available for February needs.
E12 + E22 + E32 + E21 + E31 = 23

d 19 additional employees in March.

E13 + E23 + E33 + E31 + E22 + E32 = 19

d 26 additional employees in April.

E14 + E24 + E34 + E32 + E23 + E33 = 26

ed 20 additional employees in May.

E15 + E25 + E35 + E33 +E24 + E34 = 20

ed 14 additional employees in June.

E16 + E26 + E36 + E34 + E25 + E35 = 14

(Eom) >= 0

mployees that Davis should hire each month for each contract option
 Decision Variables
March April May June
0 0 3 0
0 3 0 0
0 14 0 0

Cost Matrix
March April May June
2000 2000 2000 2000
4800 4800 4800 100000
7500 7500 100000 100000

Cost Matrix
March April May June
0 0 3 0
0 3 0 0
0 14 0 0
19 26 20 14
= = = =
19 26 20 14

rary employees that Davis should hire under each contract option, the associated contract cost for each option, and the associated t
of temporary employees hired, total contract costs, and total training costs.

Summary Table
Number of employees Training cost Hiring cost Total Cost
7 6125 14000 20125
3 2625 14400 17025
33 28875 247500 276375
43 37625 275900 313525

be reduced to $700 per month, what effect would this change have on the hiring plan? Explain.
ng plan has for identifying methods for reducing training costs.
e required to change the hiring plan based on a training cost of $875 per temporary employee?

Resolving the LPP with the reduced costs (700) indicates that Davis should hire all temporar employees on a 1 month basis
specifically to meet each months employee needs

thus the monthly hire schedule would be as follows :

January=10
February=23
March=19
April=26
May=20
June=14
 Resolving the LPP with the reduced costs (700) indicates that Davis should hire all temporar employees on a 1 month basis
specifically to meet each months employee needs

thus the monthly hire schedule would be as follows :

January=10
February=23
March=19
April=26
May=20
June=14

If training costs were any lower, this would still be the optimal hiring strategy.

Cost Matrix
March April May June
2000 2000 2000 2000
4800 4800 4800 100000
7500 7500 100000 100000

Cost Matrix
March April May June
19 26 20 14
0 0 0 0
0 0 0 0
19 26 20 14
= = = =
19 26 20 14

Matrix when $875 is the training cost

March April May June
0 0 3 0
0 3 0 0
0 14 0 0

Cost (When Training Cost is $875) 313525 Difference

to $302400 in comparison to $313525 with the previous plan.

ould recommend Davis Instruments to choose option 1 for only 1 month contracts.
uld still be the vital option to choose.

t the beginning of January in order to satisfy part of the labor requirements over the next six months.
r hour, including fringe benefits, what effect would it have on total labor and training costs over the six-month period as compared t
oth work approximately 160 hours per month. Provide a recommenda_x0002_tion regarding the decision to hire additional full-time

Cost Matrix
March April May June
2000 2000 2000 2000
4800 4800 4800 100000
7500 7500 100000 100000
 Cost Matrix
March April May June
0 0 3 0
0 3 0 0
0 4 0 0
9 16 10 4
= = = =
9 16 10 4

Inequality Requirement
= 10
= 23
= 19
= 26
= 20
= 14

with WorkForce for temporary employees and instead hire 10 full-time employees.
d to hiring temporary employees ($313,525) results in $313,525 - $313,175 = $350 cheaper.
10 full-time employees by $350 and will only have to pay for a one time training cost per employee after hiring.
vis extreme difficulty in workforce scheduling.
firms in the greater Atlanta area.

Cost
$2000
$4800
$7500

r February and so on)

May (5) June (6)

E15 E16
E25 E26
E35 E36
wever, temporary employees
 Total
7
3
33

Total
7
3
33

tion, and the associated training cost for each option.

n a 1 month basis
n a 1 month basis

Total
112
0
0

Total
7
3
33

11125

th period as compared to hiring only temporary employees?

o hire additional full-time employees.
Total
7
3
13
Microsoft Excel 16.0 Sensitivity Report
Worksheet: [Group 10_Workforce Scheduling.xlsx]Sheet2
Report Created: 1/31/2022 3:15:24 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$21 Option 1 January 10 0 2700 100 1E+030
$D$21 Option 1 February 23 0 2700 100 1E+030
$E$21 Option 1 March 19 0 2700 100 1E+030
$F$21 Option 1 April 26 0 2700 100 1E+030
$G$21 Option 1 May 20 0 2700 100 1E+030
$H$21 Option 1 June 14 0 2700 100 1E+030
$C$22 Option 2 January 0 100 5500 1E+030 100
$D$22 Option 2 February 0 100 5500 1E+030 100
$E$22 Option 2 March 0 100 5500 1E+030 100
$F$22 Option 2 April 0 100 5500 1E+030 100
$G$22 Option 2 May 0 100 5500 1E+030 100
$H$22 Option 2 June 0 98000 100700 1E+030 98000
$C$23 Option 3 January 0 100 8200 1E+030 100
$D$23 Option 3 February 0 100 8200 1E+030 100
$E$23 Option 3 March 0 100 8200 1E+030 100
$F$23 Option 3 April 0 100 8200 1E+030 100
$G$23 Option 3 May 0 95300 100700 1E+030 95300
$H$23 Option 3 June 0 98000 100700 1E+030 98000

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$24 January 10 2700 10 1E+030 10
$D$24 February 23 2700 23 1E+030 23
$E$24 March 19 2700 19 1E+030 19
$F$24 April 26 2700 26 1E+030 26
$G$24 May 20 2700 20 1E+030 20
$H$24 June 14 2700 14 1E+030 14