Question

Bob​ Carlton's golf camp estimates the following workforce requirements for its services over the next two​ years: Quarter 1 2 3 4 5 6 7 8 Demand​ (hrs) 4,200 6,400 3,100 5,000 4,400 6,240 3,800 5,000

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? 701000

(b) Use a chase strategy that varies the workforce level with minimal undertime and without using overtime. What is the total cost of this plan? 809600

(c) Propose a low-cost, mixed strategy and calculate its total cost. (Any strategy that improves on both the chase and level strategies is acceptable; no need to find the optimal schedule.)

Answer 1