What is the 5 stage lp formulation of this model

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A computer services company sells computer services to industrial users. The company's analytic officer has predicted the need for growth to meet competitive pressures. To implement this strategy, upper management has determined that the company would tactically expand its sales and service organizations. In this expansion, new districts would be defined and newly hired or appointed managers would be placed in charge to establish and run the new districts. The first job of the new district managers would be to select the salespeople and staff support employees for their districts. To aid the new district managers in deciding on the number of sales people and staffers to hire, the company researched existing office operations and made a number of analytic based observations, which it passed on to the new idistrict managers. A new manger's district should at the very least have 14 sales people and 4 staffers to achieve adequate customer service. Research has indicated that a district manager could adequately manage the equivalent of no more than 32 employees. Salespeople are twice as time consuming to manage as staffers. The district manager was assigned part of the floor in an office building for operations. This space could house no more than 20 salespeople and staffers. The district manager had some discretion regarding budgetary limitations. A total payroll budget for salespeople and staffers was set at $600,000. The manufacturing company's policy in developing a new territory would be to pay salespeople a fixed salary instead of commissions and salary. The yearly salary of a beginning sales person would be $36,000, whereas a staffer would receive $18,000. All the salespeople and staffers being hired for this district would be new with the company and as such would start with the basic salaries mentioned. Finally the source of prospective salespeople and staffers would be virtually unlimited in the district and pose no restraint on the problem situation.

What is the 5 stage LP formulation of this model?

Reference no: EM13811630

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