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Tutorial 5 LP Part 2

The document outlines two linear programming problems related to employee scheduling for a bank and production capacity for the Weigelt Corporation. The first problem involves optimizing teller schedules to minimize labor costs while meeting hourly requirements, considering full-time and part-time employees. The second problem focuses on maximizing profits from a new product across three plants with excess capacity and storage limitations, requiring a formulation of a linear program to determine optimal production levels.

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7 views

Tutorial 5 LP Part 2

The document outlines two linear programming problems related to employee scheduling for a bank and production capacity for the Weigelt Corporation. The first problem involves optimizing teller schedules to minimize labor costs while meeting hourly requirements, considering full-time and part-time employees. The second problem focuses on maximizing profits from a new product across three plants with excess capacity and storage limitations, requiring a formulation of a linear program to determine optimal production levels.

Uploaded by

tofu1002022
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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CB2203 Data-Driven Business Modeling

Tutorial 5
Linear Programming Part 2

Question 1

A bank employs 12 full-time tellers. Part-time employee (working four hours per day) are
also available. Tell requirements of each hour are as follow:

Time Period # of Tellers Required


9am – 10am 10
10am – 11am 12
11am – 12noon 14
12noon – 1pm 16
1pm – 2pm 18
2pm – 3pm 17
3pm – 4pm 15
4pm – 5pm 10

According to the regulations and contract, full-timers:


 work from 9am to 5pm
 allowed 1 hour for lunch
 half of full-timers eat at 11am and the other half at noon
 full-timers thus provide 35 hours per week of productive labor time
 earn $1000 per day in salary and benefits, on average

To secure the position of full-timers, part-time hours employed are limited to a maximum of
50% of a day’s total requirement, and earn $80 per hour (or $320 per day) on average.

Determine the optimal employee scheduling that minimize the total daily labor cost.

1
CB2203 Data-Driven Business Modeling

Question 2

The Weigelt Corporation has three branch plants with excess production capacity.
Fortunately, the corporation has a new product ready to begin production, and all three
plants have this capability, so some of the excess capacity can be used in this way. This
product can be made in three sizes: large, medium, and small that yield a net unit profit
of $420, $360, and $300, respectively. Plants 1, 2, and 3 have the excess capacity to
produce 750, 900, and 450 units per day of this product, respectively, regardless of the size
or combination of sizes involved.

The amount of available in-process storage space also imposes a limitation on the
production rates of the new product. Plants 1, 2, and 3 have 13,000, 12,000, and 5000
square feet, respectively, of in-process storage space available for a day's production of
this product. Each unit of the large, medium, and small sizes produced per day requires
20, 15, and 12 square feet, respectively.

Sales forecasts indicate that if available, 900, 1,200, and 750 units of the large, medium,
and small sizes, respectively, would be sold per day.

At each plant, some employees will need to be laid off unless most of the plant's excess
production capacity can be used to produce the new product. To avoid layoffs if possible,
management has decided that the plants should use the same percentage of their excess
capacity to produce the new product.

Management wishes to know how much of each of the sizes should be produced by each
of the plants to maximize profit. Formulate a linear program for this problem and solve it.

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