The consulting agency is working with the client on engineering plans. The client has 3 sanitation...

The consulting agency is working with the client on engineering plans. The client has 3 sanitation engineers that each can work 160 hours per month at a rate of $40 per hour. When the client needs more than 160 hours per month from a sanitation engineer, they get overtime pay of $60 per hour. The client does not allow their sanitation engineers to work more than 240 hours in a month. The treatment facility demand for sanitation engineering hours over the next 6 months is given.

Month	Estimate Engineer Hours
Jan.	480
Feb.	650
March	720
April	840
May	900
June	975
Total	4,565

The consulting agency has experienced sanitation engineers that work on a temporary contract with them as needed to support their client busy time periods, if needed, for $100 per hour. The client will not layoff anyone, but could however hire another sanitation engineer depending on needs.

Develop an aggregate plan for the next 6-months. Compute the cost of the plan using overtime and temporary engineers. Should the client hire another engineer?

Question 2 options:

	Total Cost of Plan $238,500. Do not hire another engineer.
	Total Cost of Plan $184,900. Do not hire another engineer.
	Total Cost of Plan $184,900. Hire another engineer to save $14,500.
	Total Cost of Plan $238,500 . Hire another engineer to save $31,200.

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Expert Solution

jeff jeffy answered 6 months ago

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