Question
. Happy Valley Ski Resort is weighing the difference between a chase and level strategy for their operations. Their busy season is during the winter,
. Happy Valley Ski Resort is weighing the difference between a chase and level strategy for their operations. Their busy season is during the winter, but they have also been able to secure some business during the summer, when hikers and mountain bikers use their lifts. They have calculated that, regardless of summer or winter demand, they need 1 hourly employee for every 25 customers. If they ever have fewer than the required # of employees, they compensate with overtime (x1.5 wage), however, no employee can work more than 60 hours in a given week. Hire/fire costs are $1650/employee, and employees are paid an average wage of $2250/month (fully loaded). They begin this year with 100 employees on staff. Given the following demand for next year, should Happy Valley select a chase or level strategy to minimize costs? Do you have any strategy recommendations that might not be a pure chase or level?
\begin{tabular}{|l|r|} \hline \multicolumn{1}{|c|}{ Month } & Demand \\ \hline January & 3200 \\ \hline February & 3950 \\ \hline March & 4100 \\ \hline April & 2800 \\ \hline May & 950 \\ June & 120 \\ \hline July & 320 \\ \hline August & 500 \\ \hline September & 280 \\ \hline October & 100 \\ \hline November & 1750 \\ \hline December & 3050 \\ \hline Total & 21120 \\ \hline \end{tabular}Step by Step Solution
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