Reference no: EM133220463

A Company expects an increase of demand and needs to scale-up.

Using MATLAB linprog to propose a recruitment plan to meet demand and minimise cost for the next 6 years.

Expected hours of work to meet demand

Year 1 4000

Year 2 4500

Year 3 3500

Year 4 5000

Year 5 4500

Year 6 5500

When a new worker is recruited, they need to be trained by an experienced worker for one month.

After training they become experienced worker.

Each Experienced worker can do 75 hours per month.

This is reduced to 25 hours for a experienced worker who is training a new worker.

At the beginning of Year 1 there are 60 experienced workers.

5% of experienced workers choose to leave the company every month but cannot be fired.

The labour cost of an experienced worker is $ 3500 per month and It is $ 2000 for newly recruited worker during their first month.