Question

Problem 3B:

Your company needs the following numbers of workers over the next 5 years:
Year 1: 15; Year 2: 12; Year 3: 11; Year 4: 19; Year 5: 15.
Each worker makes $80,000 per year. Currently you have 10 workers on staff. At the beginning of the year, you can make a decision to hire or fire workers. Workers you hire can be used in the same year you hire them, but cost an additional $40,000 to hire and train. Firing a worker at the beginning of a year saves you the cost of their salary, but incurs a cost of $70,000 in unemployment and severance benefits.

Use dynamic programming to find the minimum cost and the optimal number of workers in each year.

Answer 1