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Accounting

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Problem 3 (25 marks)

National Wing Company (NWC) is gearing up for the new B-48 contract. Currently NWC has 100 equally qualified workers. Over the next three months NWC has made the following commitments for wing production:

Month

Wing Production

May

20

June

24

July

30

Each worker can either be placed in production or can train new recruits. A new recruit can be trained to be an apprentice in one month. The next month, he, himself, becomes a qualified worker (after two months from the start of training). Each trainer can train two recruits. The production rate and salary per employee is estimated below.

Employee

Production Rate (Wings/Month)

Salary Per Month

Production

.6

$3,000

Trainer

.3

3,300

Apprentice

.4

2,600

Recruit

.05

2,200

At the end of July, NWC wishes to have no recruits or apprentices but have at least 140 full-time workers. Formulate and solve a linear program for NWC to accomplish this at minimum total cost.

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