Three different products are made on three production lines each week. If a prod
ID: 359597 • Letter: T
Question
Three different products are made on three production lines each week. If a production line is used in a given week there is an associated setup cost. Each worker is designated to only one production line, and the pay and production of each worker depends on which line they are assigned to. In addition, each worker is assigned to one product on their assigned line. Relevant data are given below. Line Line2 Line 3 2000 $1500 $2500 Setup Cost Product 1/worker 40 90 100 Product 2/worker70 110 120 Product 3/worker80 125 130 Cost/worker $600 S900 $1400 Each week we need to make 500 of product 1, 700 of product 2, and 800 of product 3. If we can use at most 15 workers, formulate an integer program that minimizes the total cost of meeting our weekly demand.Explanation / Answer
The task of fixing or setting of a compensation is very cruicial and it depends majorly on the objectives of the busoness. The HR department is the one in most of the organisations which fixes the compensation rates of employees. While setting up the compensation rates the following elements are considered:
a. Budget - Every position in an organisation is allocated a budget and the employee for the position can be offered the amount within the budget. It is always advisory to look for candidates who suit within the budget of the role and simaltaneously are good enough for the role. The budget of a compensation package defines the fixed and variable ratios that are to be offered to the candidate. The fixed ration consists of the fixed pay that the candidate is going to earn and the variable includes the benefits and incentives.
b. Comparison with Competition- Another very importnat factor especially in today's scenario is to keep an eye on what the competition is providing, accordingly either the salary is matched if the candidate is desirable by the organisation or if the candidate seems to be an extraordinary talent which suits the company's requirement, they are sometimes even ready to pay more than what the competition is paying. This helps in creating a competitive advantage.
c. Benefits packages- The most attractive thing in a compensation package is the benefits part. The employees are attracted towards taking up the job is majorly because of the benefits they would be provided. The benefits packages include health package, tuition reimbursements for children and other benefits.
Thus, the above three elements play a major role in the designing of a compensation package.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.