# Book1 - Number fired a Determine how to minimize the bus...

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Problem 3.34 Bus drivers A bus company believes that it will need the following Yearly salary Original hiring, firing costs Percentage increase in each numbers of bus drivers during each of the next 5 years: Hiring cost \$0 0% 60 drivers in year 1; 70 drivers in year 2; 50 drivers in Firing cost \$0 year 3; 65 drivers in year 4; 75 drivers in year 5. At the beginning of each year, the bus company must decide Initial drivers 50 how many drivers to hire or fire. It costs \$4000 to hire a driver and \$2000 to fire a driver. A driver’s salary is Hiring/firing schedule \$10,000 per year. At the beginning of year 1 the company Year 1 2 3 4 5 has 50 drivers. A driver hired at the beginning of Drivers from last year Totals a year can be used to meet the current year’s requirements Number hired 0 0 0 0 0 0 and is paid full salary for the current year.
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Unformatted text preview: Number fired a. Determine how to minimize the bus company’s Number on payroll salary, hiring, and firing costs over the next 5 years. >= >= >= >= >= Demand 60 70 50 65 75 Salary cost \$10,000 Hiring cost \$4,000 Firing cost \$2,000 Total cost \$16,000 Sensitivity of total cost and total hired and fired to percentage increase in hiring, firing costs \$G\$12 \$G\$13 \$B\$22 0% 45 20 5% 45 20 10% 45 20 15% 45 20 20% 45 20 25% 45 20 Over this range of pct increases, the total number hired and fired doesn't change, but of course, the cost increases. A B C D E F G H I J K L M N O P 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32...
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## This note was uploaded on 10/20/2011 for the course BUS 101 taught by Professor Doe during the Spring '10 term at University of Phoenix.

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