Note—Aggregations of Subsidiary Firms for Minimal Unemployment Compensation Payments Via Integer Programming

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.