Quarter 1 2 4 Demand (hours) 4,200 6,400 3,000 4,800 Quarter 5 6 7 8 Demand (hours) 4,400 6,240 3,600 4,800
Bob Carlton’s golf camp estimates the following staff requirements for its services over the next 2 years.
Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime.
Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480 hours,
with an overtime cost of $20 per hour. Unused regular time
for certified instructors is paid at $15 per hour. There is no
cost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are
$4,000 per employee. Currently, eight employees work in this
capacity.
a. Find a staffing plan using the level strategy that allows for
no delay in service. It should rely only on overtime and the
minimum amount of undertime necessary. What is the
total cost of this plan?
b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of
this plan?
c. Propose a better plan and calculate its total cost
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