Bob? Carlton\'s golf camp estimates the following workforce requirements for its
ID: 354811 • Letter: B
Question
Bob? Carlton's golf camp estimates the following workforce requirements for its services over the next two? years:
quarter/demand (hrs)
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 8 employees work in this capacity.
a) Find a workforce 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 the? plan? - $708,400
b) Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this? plan? ?$ (Enter your response as an? integer.) - ?
1 2 3 4 5 6 7 8 4,400 6,400 3,100 4,800 4,600 6,400 3,600 4,900Explanation / Answer
(a). Level Strategy -
No. of Employee to be kept is fixed at 8 employees. Remaining is managed through overtime only. so,
Thus Normal Working Hours = 480*8 = 3840; and overtime will be 4775-3840 = 935 for 8 employees;
Thus, per employee overtime required = 935/8 = 117 hrs which is less than upper cap of 120 hrs. Thus, 8 will be sufficient for this forecasted demand.
So, Total cost = $ 7200* 8 *8 +935*8*$20 = $610400 ;
(b) Chase Strategy -
Thus, Total cost = Employee salary cost +hiring cost + Layoff cost
= 84*$7200 + 16*$10000 +13*$4000 = $ 816800
Quarter Demand Production Quantity for demand 1 4400 4775 2 6400 4775 3 3100 4775 4 4800 4775 5 4600 4775 6 6400 4775 7 3600 4775 8 4900 4775 Average demand 4775