!!ANSWER QUESTION 3 ONLY!!

Case: Workforce Scheduling Renova has two manufacturing sites located in Australia. Renova faces difficulty in workforce scheduling as product demand fluctuates considerably from month to month. To address this issue, Renova started hiring temporary workers supplied by BK, a company that specialises in providing temporary employees for firms in Australia. BK offered to provide temporary employees under three contract options that differ in terms of the length of employment and the cost. The three options are summarised: Option Length of Employment Cost 1 $1800 2 One Month Two Months Three Months $4000 $6200 3 The longer contract periods are more expensive because BK experiences greater difficulty finding temporary workers who are willing to commit to longer work assignments. 1. A schedule that shows the number of temporary employees that Renova should hire each month for each contract option. (8 marks: 4 marks for developing mathematical model and 4 marks for reproduction of the model in Excel and solving the problem) 2. A summary table that shows the number of temporary employees that Renova should hire under each contract option, the associated contract cost for each option, and the associated training cost for each option. Provide summary totals showing the total number of temporary employees hired, total contract costs, and total training costs. (4 marks) 3. Suppose that Renova hired 5 full-time employees at the beginning of January in order to satisfy part of the labour requirements over the next six months. If Renova can hire full-time employees for $25 per hour, including fringe benefits, what effect would it have on total labour and training costs over the six-month period as compared to hiring only temporary employees? Assume that full-time and temporary employees both work approximately 168 hours per month. Provide a recommendation regarding the decision to hire additional full-time employees. (4 marks) 4. If the cost to train each temporary employee could be reduced to $500 per month, what effect would this change have on the hiring plan of part 1? Explain. Discuss the implications that this effect on the hiring plan has for identifying methods for reducing training costs. How much of a reduction in training costs would be required to change the hiring plan? (4 marks)