4. (Ch10) A retailer experiences a seasonal demand pattern for its services. Labor requirements over atypical six-month period follow.PeriodRequirement112210Costs associated with operations are as follows:Wages = $1,500 per worker per monthHiring cost = $1,500 per workerLayoff cost = $1,500 per worker312485968The current workforce level is 11 workers. Use the spreadsheet approach and the preceding data to answerthe following questions.a. What is the total cost of the staffing plan, including the cost of regular wages, hiring, and layoffs usinga chase strategy with hiring and layoffs, but no overtime?b. What is the total cost of the staffing plan, using a level strategy in which no overtime is allowed, andthe undertime paid for?c. Suppose that overtime is allowed up to 25% of the regular-time capacity, and that overtime wages are150% of the regular-time rate. What is the total cost of the level strategy with overtime and undertime thatalso minimizes undertime?

Given data: Period 1 2 3 4 5 6 Requirement 12 10 12 8 9 8

Answered: 4. (Ch10) A retailer experiences a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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1. The Kintampo Tourist Resort (KTR) is one of Ghana’s best holiday centers and sells a special type of souvenir called Expensive. As you might expect, the demand for Expensive is highly seasonal as tourist centers exhibit a highly seasonal attraction pattern, with peaks during the summer months. The following forecasts are available for Expensive.Inventory carrying cost = GH¢3 per piece per quarter Production per employee = 1000 piece per quarter Regular workforce = 50 workersCost of regular production = GH¢50 per piece Hiring cost per employee = GH¢75Firing cost per employee = GH¢100 The management of KTR does not wish to use Level production nor Chase Demand but wants to adopt one of the following strategies:Strategy I: Produce 71,000 pieces in Quarter 1, Produce 151,000pieces in Quarter 2, Produce 200,000 pieces in Quarter 3,and Produce 30,000 pieces in Quarter 4.Strategy II: Produce 51,000 pieces in Quarter 1, Produce 161,000pieces in Quarter 2, Produce 210,000 pieces in Quarter…
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