During each year, CSL Computer Company needs to train 27 service representatives. It costs $12,000 to run a training program, regardless of the number of students being trained. Service reps earn a monthly salary of $1500, so CSL does not want to train them before they are needed. Each training session takes one month.
a. State the assumptions needed for the EOQ model to be applicable.
b. How many service reps should be in each training group?
c. How many training programs should CSL undertake each year?
d. How many trained service reps will be available when each training program begins?