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Based on Lanzenauer et al. (1987). To process income tax forms, the IRS first sends each...

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General Management

Based on Lanzenauer et al. (1987). To process income tax forms,the IRS first sends each form through the data preparation (DP)department, where information is coded for computer entry. Then theform is sent to data entry (DE), where it is entered into thecomputer. During the next 3 weeks, the following quantities offorms will arrive: week 1, 40,000; week 2, 30,000; and week 3,60,000. All employees work 40 hours per week and are paid $500 perweek. Data preparation of a form requires 15 minutes, and dataentry of a form requires 10 minutes. Each week, an employee isassigned to either data entry or data preparation. The IRS mustcomplete processing all forms by the end of week 5 and wants tominimize the cost of accomplishing this goal. Assume that allworkers are full-time employees and that the IRS will have the samenumber of employees each week. Assume that all employees arecapable of performing data preparation and data entry. Determinehow many workers should be working and how the workers shouldallocate their hours during the next five weeks.

Week 4 and Week 5 will be solved with the Solver add in withExcel.

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