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Linear programming

The document discusses the application of goal programming in human resource planning, focusing on achieving a sales target of 5500 records while managing overtime and ensuring full utilization of sales staff. It outlines the constraints, decision variables, and objective function necessary for optimizing sales performance and minimizing overtime costs. Additionally, it introduces a linear programming model for multi-period planning in a manufacturing plant, detailing the required variables, objective function, and constraints for production and storage management.

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shyamaldhanapala
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7 views

Linear programming

The document discusses the application of goal programming in human resource planning, focusing on achieving a sales target of 5500 records while managing overtime and ensuring full utilization of sales staff. It outlines the constraints, decision variables, and objective function necessary for optimizing sales performance and minimizing overtime costs. Additionally, it introduces a linear programming model for multi-period planning in a manufacturing plant, detailing the required variables, objective function, and constraints for production and storage management.

Uploaded by

shyamaldhanapala
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A.

Goal Programming application in human resource planning


a) Clearly identify the goals in the model
1. Achieving a sales goal of 5500 records for the next month.
2. Limiting the overtime of full – time salesmen to 100 hours.
3. Ensuring full utilization of both full-time salesmen and part-time salesmen
4. Minimizing the sum of overtime for both full-time salesmen and part-time
salesmen with differential weights as per net marginal profit ratio between
full-time and part-time salesmen

b) Formulate the relevant constraints and indicate the over and under achievement
of goals.
Description Full time Part time
salesmen salesmen

Number of employees 5 4

The normal working hours per month 160 80

The average sales as records per hour 5 2

The average hourly wage rates (Rs per hour) 300 200

Over time rate 1.5 1

● Average profit from the sales of a record is Rs. 150.00

● The shop is open six days a week

● the sales goal for the next month should be 5500 records

● Over time rate for the fulltime sales person is 50% more than the hourly wage
rate
● overtime of more than 100 hours among the full-time salesmen should be
avoided
● the full utilization of full-time salesmen as with the full utilization of part-time
salesmen.
● minimize the sum of overtime for both full-time and part-time salesmen.
Constraints;
1. Achieving a sales goal of 5500 records for the next month.

5 xf + 2 xp + 5 yf + 2 yp + d1- - d1+ = 5500

2. Limiting the overtime of full – time salesmen to 100 hours.


yf + d2- - d2+= 100

3. Ensuring full utilization of both full-time salesmen and part-time salesmen

xf + d3- + d3+ = 160 x 5


xf + d3- - d3+ = 800

xp + d4- + d4+ = 80 x 4
xp + d4- + d4+ = 320

4. Minimizing the sum of overtime for both full-time salesmen and part-time
salesmen
yf + d5+ + yp + d6+ = minimize

c) Formulate the objective function by identifying the undesirable deviations and


the appropriate weights.

undesirable deviations
d1- - Underachievement of sales goal
d1+ - Overachievement of sales goal
d2+ - Overachievement of overtime limit of full-time salesmen
d3- - Underachievement of regular time of full-time salesmen
d3+ - Overachievement of regular time of full-time salesmen
d4- - Underachievement of regular time of part-time salesmen.
d4+ - Overachievement of regular time of part-time salesmen.
d5+ - Overachievement of fulltime overtime minimization
d6+ - Overachievement of parttime overtime minimization

The appropriate weights


w1 - High priority for achieving sales goal = 1
w2 - Limit the overtime of full-time salesmen to 100 hours = 1
w3 - Twice the importance of full-time employee’s utilization compared
to part time = 2
w4 - Regular work hour underutilization weight for part time = 1
w5 - Weight assigned based on net marginal profit ratio overtime of
full-time salesmen = 3
w6 - Weight assigned based on net marginal profit ratio overtime of
part-time salesmen = 1

Objective Function
Z = w1 d1- /5500+ w2 d2+ /100+ 2w3 d3- /800+ w4 d4- /320+ 3w5d5+ w6d6

d) Mention all the decision variables in the model

xf – Number of normal hours worked by full-time salesmen


xp – Number of normal hours worked by part-time salesmen
yf – Number of overtime hours worked by full-time salesmen
yp – Number of overtime hours worked by part -time salesmen

e) Derive the solution.


Attached in excel document

B. Linear programming application to multiperiod planning problem in a


manufacturing plant
a) Define the Required variables of the model with appropriate notations.
xit - Number of unit s of product i (i = 1, 2, 3, 4, 5, 6, 7) produced in month t (t = 1, 2, 3,
4, 5, 6)
sit - Number of units of product i stored at the end of month t (t = 1, 2, 3, 4, 5, 6)
pi - Profit contribution per unit of product i
hi - Holding cost per unit of product i
Mkt - Number of available hours for machine type k in month t.

b) Identify all the decision variables in the model.


xit - Number of unit s of product i (i = 1, 2, 3, 4, 5, 6, 7) produced in month t (t = 1, 2, 3,
4, 5, 6)
sit - Number of units of product i stored at the end of month t (t = 1, 2, 3, 4, 5, 6)

c) Define the objective function.


Max Z = ∑pixit - ∑hisit

i = 1, 2, 3, 4, 5, 6, 7
t = 1, 2, 3, 4, 5, 6

d) Define the appropriate constraints.


 Machine capacity constraints
 Market demand limitations
 Storage limit constraints
 End of June available stock constraints

e) Derive the solution to the problem.


Attached in excel document

f) Determine the binding constraints and the associated shadow prices.

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