A company has a goal to maintain the current employment level, but places more importance on laying employees off than on hiring new employees. In other words, the company would rather hire than lay off employees. If the company assigns a "penalty weight" of 4 for the amount under the employment goal (goal 2) and a weight of 2 for the amount over the employment goal, how would this be expressed in the objective function? A) Min 4P₂d₂^- + 2P₂d₂⁺ B) Min 2P₂d₂^-+ 4P₂d₂⁺ C) Max 4P₂d₂^- + 2P₂d₂⁺ D) Min 4P₂d₂+ ⁺2P₂d₂^-

Question

Quizplus · Accepted Answer

The company places a higher penalty on being under the employment goal (laying off employees) than over it (hiring new employees), thus the penalty for being under the goal is 4 and for being over is 2, which matches option A's formulation in a minimization objective function.

A Company Has a Goal to Maintain the Current Employment