Question

In: Operations Management

Bob Carlton's golf camp estimates the following staff requirements for its services over the next 2...

Bob Carlton's golf camp estimates the following staff requirements for its services over the next 2 years.

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 plant?

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Expert Solution

a.The peak demand is 6,400 hours in quarter 2, which is the highest of all quarters.

As each employee can work 600 hours per quarter (480 on regular time and 120 on overtime), the level workforce that covers requirements and minimizes under time is

The total cost of the plan is level strategy is calculated as below:

Cost

Calculation

Amount

Regular wages

$633,600

Overtime wages*

22,400

19,200

Hire costs

30,000

TOTAL

$705,200

Note: The 11 workers can produce of regular time in any quarter.

• The 6,400-hour requirement in quarter 2 exceeds this amount by 1,120 hours.

• The 6,240-hour requirement in quarter 6 exceeds this amount by 960 hours

The total under time hours can be calculated as:

Quarter

Calculation

Total hours

Quarter 1

11(480) – 4,200

1,080 hours

Quarter 3

11(480) – 3,000

2,280 hours

Quarter 4

11(480) – 4,800

480hours

Quarter 5

11(480) – 4,400

880hours

Quarter 7

11(480) – 3,600

1,680hours

Quarter 8

11(480) – 4,800

480hours

TOTAL

6,880hours

Therefore, the total cost of the plan using level strategy is $705,200

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keosha answered 10 months ago
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