Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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Chapter 10, Problem 8P

Tax Prep Advisers, Inc. has forecasted the following staffing requirements for tax preparation associates over the next 12 months. Management would like three alternative staffing plans to be developed.

Chapter 10, Problem 8P, Tax Prep Advisers, Inc. has forecasted the following staffing requirements for tax preparation

The company currently has 10 associates. No more than 10 new hires can be accommodated in any month because of limited training facilities. No backorders are allowed, and overtime cannot exceed 25 percent of regular-time capacity on any month. There is 110 cost for unused overtime capacity. Regular-time wages are $1,500 per month, and overtime wages are 150 percent of regular-time wages. Undertime is paid at the same rate as regular time. The hiring cost is $2,500 per person, and the layoff cost is $2,000 per person.

  1. Prepare a staffing plait utilizing a level workforce strategy, minimizing undertime. The plan may call for a one-time adjustment of the workforce before month 1.
  2. Using a chase strategy, prepare a plan that is consistent with the constraint on hiring and minimizes use of overtime.
  3. Prepare a mixed strategy in which the workforce level is slowly increased by two employees per month through month 5 and is then decreased by two employees per month starting in month 6 and continuing through month 12. Does this plan violate the hiring or overtime constraints set the company?
  4. Contrast these three plans on the basis of annual costs.

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Tax Prep Advisers, Inc., has forecasted the following staffingrequirements for tax preparation associates over the next12 months. Management would like three alternative staffingplans to be developed. The company currently has 10 associates. No more than 10new hires can be accommodated in any month because oflimited training facilities. No backorders are allowed, andovertime cannot exceed 25 percent of regular-time capacityon any month. There is no cost for unused overtime capac-ity. Regular-time wages are $1,500 per month, and overtimewages are 150 percent of regular-time wages. Undertime ispaid at the same rate as regular time. The hiring cost is $2,500per person, and the layoff cost is $2.000 per person.a. Prepare a staffing plan utilizing a level workforce strategy,minimizing undertime. The plan may call for a one-timeadjustment of the workforce before month 1.b. Using a chase strategy, prepare a plan that is consistent withthe constraint on hiring and minimizes use of overtime.c.…
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Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,400 units) Variable expenses Contribution margin $ 112,200 50,490 61,710 Fixed expenses 45,700 Net operating income $ 16,010 If the company sells 3,900 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $61,710 $70,785 $92,700 $18,364

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Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management

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