Densepack company produces disk drives for mainframe

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Reference no: EM1381823

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Densepack company produces disk drives for mainframe computers. The following information is given for optimizing their workforce level:

Planning Horizon: 6 month (Jan-Jun)

Forecasted Demands: 1280, 640, 900, 1200, 2000, 1400

Current Workforce: 300 workers

Ending inventory in December is expected to be 500 units and they want to have 600 units on hand at the end of June.

CH = cost of hiring one worker = $500

CF = cost of fring one worker = $1000

CI = cost of holding one unit of inventory for one month = $80

K = Number of aggregate units produced by one worker in one day = 0.14653

There is no overtime, no subcontract and no idle time. Please find the optimal solution to minimizing the total cost.

Reference no: EM1381823

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