Note---Aggregations of Subsidiary Firms for Minimal Unemployment Compensation Payments Via Integer Programming
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In Ohio, as well as several other states, annual unemployment compensation payments paid by a corporation can be minimized by solving a set partitioning problem which has all possible nonzero binary columns. The scenario, along with the model and an illustration are given. Some solution techniques and actual results, taken from a consulting effort, for a few Northeast Ohio corporations are also mentioned.
[1] George L. Nemhauser,et al. The Set-Partitioning Problem: Set Covering with Equality Constraints , 1969, Oper. Res..