ABC company produces and sells wooden desks. The demand is forecasted for each month of the next year. The company currently has 20 employees and each employee can produce 30 desks in a month. The monthly salary for each employee is $110. Since raw material costs change each month, the production costs are different for each month of the year. An excessive amount produced in a month can be stored in the inventory for use in the following months. However, the storage space has a capacity of 300 desks in total. The inventory holding costs are also different each month. In order to satisfy excessive demand in a month, the company may use its inventories, may implement overtime working hours, or hire additional workers. The total overtime production for each worker each month can be at most 10% of the regular time production. Also, the overtime production cost is different than the regular time production cost. Furthermore, the maximum number of workers who can work in the company at the same time is 25. It is also possible to fire the workers but the workforce cannot be less than 15. Hiring and firing costs differ each month. The objective function is to minimize the total cost
Formulate this problem as an Lp .
ABC company produces and sells wooden desks. The demand is forecasted for each month of the next year. The company currently has 20 employees and each employee can produce 30 desks in a month. The monthly salary for each employee is $110. Since raw material costs change each month, the production costs are different for each month of the year. An excessive amount produced in a month can be stored in the inventory for use in the following months. However, the storage space has a capacity of 300 desks in total. The inventory holding costs are also different each month. In order to satisfy excessive demand in a month, the company may use its inventories, may implement overtime working hours, or hire additional workers. The total overtime production for each worker each month can be at most 10% of the regular time production. Also, the overtime production cost is different than the regular time production cost. Furthermore, the maximum number of workers who can work in the company at the same time is 25. It is also possible to fire the workers but the workforce cannot be less than 15. Hiring and firing costs differ each month. The objective function is to minimize the total cost
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