1. The Barberton Municipal Division of Road Maintenance.. is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 6,000, 12,000, 19,000, and 9,000, respectively. Each of the eleven workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $18 for each overtime hour. Overtime is limited to 20 percent of the regular time capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,000, and the cost of laying off a worker is $2,000. Subcontracting is not permitted. a. Find a level workforce plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of this plan? The peak demand is 19,000 hours in quarter 3. As each employee can work 600 hours per quarter (500 regular time and 100, or 0.20 x 500, overtime), the level workforce that allows no delay and minimizes undertime is 19,000 hr/ [600 hr./person] = 31.67 or 32 employees. Cost Calculation Amount Regular wages ($6000 per quarter)(32)(4 quarters) $768,000 Overtime wages (3000 hr in quarter 3)($18 per hr) 54,000 Hire costs ($3000 per hire)(21 hires) 63,000 TOTAL $885,000 The 32 workers can produce (32)(500) = 16,000 hours of regular time in any quarter. The total undertime hours are: Quarter 1 32(500) - 6,000 10,000 hours Quarter 2 32(500) - 12,000 4,000 Quarter 4 32(500) - 9,000 = 7.000 21,000 hours