CHANGE IN GOVERNMENT LABOR LAWS PART I
Let’s consider a small manufacturing plant with 9 employees. Each employee has his own constraints in terms of « days of week availability » and in terms of « maximum hours worked per day ». And, of course, he has an « hour rate ».
Name Gender
Mon
Tue
Wed
Thu
Fri
Sat
Sun Max Hour
Day Cost
Christie F X X X X 8 10
Corinna F X X X X 10 9
Cynthia F X X X X 10 9
Karen F X X X X 8 10
Michelle F X X X X 9 6
Sandy F X X X X 9 8
Allan M X X X X X 9 7
Andrew M X X X X X 10 8
Peter M X X X X X 9 7
Also, the labor laws define a « minimum and a maximum number of work hours per week » for this company’s type of contract/work.
Limits by law
We want to maximize production by exploiting the number of man-hours worked to the maximum. Use the Solver feature in MS-Excel to propose a solution for our needs that respects the constraints.
I.a- What is the maximum possible production (man-hours worked)? I.b- What is the « average hour rate »?
PART II
The government decides to change the labor laws to handle growing social problems:
- growing number of jobless people: the number of allowed work hours per person will be decreased to encourage companies to hire more people
- mothers leaving their kids’ education too early: the « minimum and a maximum number of work hours per week » will be different for men and women
New limits by law
II.a- What is the new maximum possible production (man-hours worked)? II.b- And the « average hour rate »?
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