Using Excel Solver - A company has three different kinds of employees. These are highly trained, moderately trained and untrained workers. The company expects a shift towards more highly trained employees necessary over the next few years. It is possible to train people at a certain cost Laying people off also costs a certain amount. How should the company reorganize to save costs and/or have as few lay-offs as possible? Solution 1) The variables are the number of people that are trained, hired and laid off. On worksheet HireFire these are given the names Trainees, Employees_hired, and Employees_laid_off. 2) The constraints can be divided into 2 parts. First, there are the logical constraints, all of which are defined via the Assume Non-Negative option: Trainees >= 0 Employees_hired >= 0 Employees_laid_off >= 0 Second, we have the training, laying off and hiring constraints. These do not use defined names, but are represented on the worksheet by the following cells: C22 <= B17 C23 <= B16 C26 : C28 <= C9 : C11 C31 : C33 <= B15 : B17 C40 : E42 = C15 : E17 D22 <= C42 D23 <= C41 D26 : D28 <= C9 : C11 D31 : D33 <= C40 : C42 E22 <= D41 E23 <= D42 E26 : E28 <= C9 : C11 E31 : E33 <= D40 : D42 In general, these constraints reflect the movement of employees from being hired untrained to becoming moderately trained or highly trained. 3) The main objective is to minimize cost.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Using Excel Solver - A company has three different kinds of employees. These are highly trained, moderately trained and untrained workers. The company expects a shift towards more highly trained employees necessary over the next few years. It is possible to train people at a certain cost Laying people off also costs a certain amount. How should the company reorganize to save costs and/or have as few lay-offs as possible?

Solution 1) The variables are the number of people that are trained, hired and laid off. On worksheet HireFire these are given the names Trainees, Employees_hired, and Employees_laid_off.

2) The constraints can be divided into 2 parts. First, there are the logical constraints, all of which are defined via the Assume Non-Negative option: Trainees >= 0 Employees_hired >= 0 Employees_laid_off >= 0 Second, we have the training, laying off and hiring constraints.

These do not use defined names, but are represented on the worksheet by the following cells:

C22 <= B17

C23 <= B16

C26 : C28 <= C9 : C11

C31 : C33 <= B15 : B17

C40 : E42 = C15 : E17

D22 <= C42

D23 <= C41

D26 : D28 <= C9 : C11

D31 : D33 <= C40 : C42

E22 <= D41

E23 <= D42

E26 : E28 <= C9 : C11

E31 : E33 <= D40 : D42

In general, these constraints reflect the movement of employees from being hired untrained to becoming moderately trained or highly trained.

3) The main objective is to minimize cost.

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