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)	4,400	6,400	3,000	5,000	4,500	6,300	3,700	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?

​b. Use the 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)

C. Consider the following proposed plan for a different demand scenario. In this​ case, each certified instructor puts in 480 hours per quarter regular time. All other cost and capacity values are the same as above.

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Answer 1

Ans 1)

In a Level Strategy, no of employees will remain same throughout the all 8 quarters. Our objective is to keep the undertime to minimum undertime. To do so we need to identify the no. of employee who can fulfill the demand for all quarters using regular as well as overtime. The maximum demand is in quarter 2, to fulfill the demand in Q2 we need 11 employees.

As it is a level strategy, we need to hire 3 employee at the start of Q1.

Total Cost of this strategy will be as below:

Ans 2) Chase Strategy

In Chase Strategy, we need to adjust the manpower with respect to demand. In this case, we don't need to consider the overtime so all calculations are based on the regulat working hours only.

No. of Regular employees = Demand / 480

New Hiring = No. of Regular Employees Required - No. of Regular Employees in previous quarter

Layoff = No. of Regular Employees in previous quarter -  No. of Regular Employees Required

Total Cost = RW + HC + LC = 612000 +170000 + 56000 = $ 8,38,000.00

Ans 3) Scenario is not given. But you may use above excel format to calculate the total cost.