Mira Vista Planters provides reforestation services to large paper products companies. It must hire one planter for
Question:
Mira Vista Planters provides reforestation services to large paper products companies. It must hire one planter for every 10,000 trees that it has contracted to plant each month. New employees are hired in the month needed, on the first day of the month. An employee must receive 1 week of evaluation and training before being profitably employed and therefore works three out of four weeks in the month hired. For every five prospective employees who enter training, three are deemed suitable for employment. When cutbacks occur, employees are laid off on the first day of the month. Every employee laid off receives severance pay equal to 1 week's salary, which is on average \(\$ 400\), regardless of how long the layoff will last. Laid-off employees inevitably drift away, and new hires must be trained.
The company has been offered the following contracts for the upcoming year. Each monthly contract is offered on an accept or reject basis; that is, if a monthly contract is accepted, it must be completed in full. Partial completion is not acceptable. The revenue per tree planted is \(\$ 0.20\).
Required Prepare a labor plan for the upcoming year, indicating the following for each month:
a. Whether you feel the company should accept or reject the proposed planting contract.
b. How many people will be hired for training. (Recall that an employee is not available for planting during the week of training and that only three of the five employees accepted for training can be hired.)
c. How many people will be laid off. The organization will have two trained employees on January 1.
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