How to solve this problem? This is what I know so far.
Let A be the no. of drivers at the beginning of the year.
Let B be the no. of drivers fired.
Let C be the no. of drivers recruited
Is the objective function 12000A + 2000B + 1000C
Am I on the correct track? What is next?
SBS bus company just won the tender to run premium bus services from the east of New York. The company predicts that they need to have at least the following numbers of bus drivers in coming 5 years: Year 1: 100 drivers; Year 2: 90 drivers; Year 3: 110 drivers; Year 4: 120 drivers and Year 5: 90 drivers.
Recruiting one driver costs the company 1,000 USD which includes pre-deployment training. Firing one driver costs the company 2,000 USD including the severance pay. Each driver on payroll costs the company 12,000 USD per year. The company currently has 60 bus drivers on payroll. Apply linear programming model to develop a formulation to minimize the total recruiting, firing and payroll cost for the bus company. List assumptions you made in the formulation. Note that you are not required to solve the problem.