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The Effect of Worker Productivity on Production Smoothing

Author

Listed:
  • M. G. Orrbeck

    (AB Turitz & Co., Göteborg, Sweden)

  • D. R. Schuette

    (The University of Wisconsin)

  • H. E. Thompson

    (The University of Wisconsin)

Abstract

In this paper the assumptions of constant wages and productivity in the production smoothing problem are dropped in favor of a model which explicitly treats changes in them through employee experience. The model is an extension of the Hanssmann-Hess model and hence the necessary transformation to convert the problem into linear programming format are provided. Finally some numerical calculations are made to illustrate the use of the model. These calculations suggest that when the difference in productivity between old and new workers is quite large, as would be the case in a skilled-labor-intensive industry, the extended model represents a substantial improvement over the original Hanssmann-Hess model.

Suggested Citation

  • M. G. Orrbeck & D. R. Schuette & H. E. Thompson, 1968. "The Effect of Worker Productivity on Production Smoothing," Management Science, INFORMS, vol. 14(6), pages 332-342, February.
    • Handle: RePEc:inm:ormnsc:v:14:y:1968:i:6:p:b332-b342
    DOI: 10.1287/mnsc.14.6.B332
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    Cited by:

    1. Michael J. Fry & Michael J. Magazine & Uday S. Rao, 2006. "Firefighter Staffing Including Temporary Absences and Wastage," Operations Research, INFORMS, vol. 54(2), pages 353-365, April.
    2. Noah Gans & Yong-Pin Zhou, 2002. "Managing Learning and Turnover in Employee Staffing," Operations Research, INFORMS, vol. 50(6), pages 991-1006, December.
    3. O. Zeynep Akşin, 2007. "On valuing appreciating human assets in services," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 221-235, March.
    4. Onesun Steve Yoo & Guillaume Roels & Charles J. Corbett, 2016. "The Time–Money Trade-Off for Entrepreneurs: When to Hire the First Employee?," Manufacturing & Service Operations Management, INFORMS, vol. 18(4), pages 559-569, October.

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