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Bob Canton’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 over-time. Regular-time wages and benefits cost Canton $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.
- 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?
- Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
- Propose a better plan and calculate its total cost.
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Chapter 10 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
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