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Enlacasa is a company specializing in services for elderly people living at their homes. Given the nature of the services the companions provide, the rotation
Enlacasa is a company specializing in services for elderly people living at their homes. Given the nature of the services the companions provide, the rotation of personnel is high and 15 people leave their job at the end of every month. To fill those vacancies, every two months crews of 30 people are trained at fixed cost of $3,500 (which is independent of the number of trainees). After finishing the training, the now certified companions are placed on call waiting for an assignment. An employee on call has an annual cost of $1,300. Assuming the variability in the demand for Enlacasa services, and in the number of people leaving is negligible: Provide the total annual cost of the current recruitment strategy (30 people every two months). If the current strategy is not minimizing the total annual cost, provide a recommendation. Your recommendation should include the total cost of your proposed strategy. (Note: you cannot change the fixed cost of $2,500 per on-boarding session, nor the $1,300 annual cost of an employee on call)
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