Operational Research (O.R.) case studies
What’s the problem?
You are a shop manager… You are opening a new branch and need to employ staff You want to keep your labour costs as low as possible
Inexperienced staff are cheaper… …but experienced staff are more productive
How many experienced and inexperienced staff should you take on?
What do we need to know? How much do you need to pay staff?
Inexperienced staff cost £5 an hour Experienced staff cost £8 an hour
How productive are inexperienced and experienced staff?
Inexperienced staff are two thirds as productive as experienced staff
How many staff do you need?
You need the equivalent of 20 experienced members of staff
Anything else you need to consider?
Head Office states that you must employ at least one experienced member of staff for every three inexperienced members of staff
Let’s summarise the problem We want to employ the equivalent of at least 20 experienced members of staff
with at least one experienced member of staff for every three inexperienced members of staff
with the minimum possible labour cost
This is an example of
Linear Programming Problems The aim is to choose the best combination of a number of quantities to optimise the outcome subject to certain constraints
Another example where this is used Factories which make several products deciding how many of each to make weighing up several factors for each product such as the profit to be made, the demand, the time needed to produce it, etc.
Over the next few lessons we will learn how to approach problems of this type…
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