A Company Can Decide How Many Additional Labor Hours to Acquire

question 31

Essay

A company can decide how many additional labor hours to acquire for a given week.Subcontractors will only work a maximum of 20 hours a week.The company must produce at least 200 units of product A,300 units of product B,and 400 units of product C.In 1 hour of work,worker 1 can produce 15 units of product A,10 units of product B,and 30 units of product C.Worker 2 can produce 5 units of product B,20 units of product B,and 35 units of product C.Worker 3 can produce 20 units of product A,15 units of product B,and 25 units of product C.Worker 1 demands a salary of $50/hr,worker 2 demands a salary of $40/hr,and worker 3 demands a salary of $45/hr.The company must choose how many hours they should hire from each worker to meet their production requirements and minimize labor cost.

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Definitions:

Quantitative Tools

These are methods and instruments used to gather and analyze numerical data, often applied in research, finance, and planning.

Operations Management

The process of managing productive systems that transform resources into finished products.

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization, to enhance learning and performance.

Open System

In organizations or technology, this term refers to systems that interact with their environment, exchanging information or resources.