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Difference Between The Plans

The two plans differ in their hiring and production approaches. The LP-based plan hires most workers upfront to build a larger initial inventory, avoiding overtime costs later. It hires 18 workers immediately and 9 in November. In contrast, Latus delays all hiring until March, requiring overtime to meet peak demand. The LP plan is more efficient as it avoids using new and expensive overtime workers through better front-loading of production.

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Harshith Gowda
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39 views

Difference Between The Plans

The two plans differ in their hiring and production approaches. The LP-based plan hires most workers upfront to build a larger initial inventory, avoiding overtime costs later. It hires 18 workers immediately and 9 in November. In contrast, Latus delays all hiring until March, requiring overtime to meet peak demand. The LP plan is more efficient as it avoids using new and expensive overtime workers through better front-loading of production.

Uploaded by

Harshith Gowda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Difference Between the Plans

The primary difference between the two plans are as follows: -


1. Both plans require hiring 27 workers but in the linear programming (LP) Based plan hires 18 of
these immediately and the remaining 9 in November, whereas Latus postpones hiring new workers
until March and the must then hire more workers to satisfy the peak in demand.
2. The LP based plan uses the extra workers in the first period to create larger inventories of snow
blowers at the end of the first period but then no workers need to be hired in the second period and
less overtime has to be worked in the second and the third periods to handle the large demand in these
periods.
3. The LP based plan never has new workers work overtime because they are very inefficient and
expensive whereas as laust’s plan uses considerable overtime work new workers.

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