Question
i need help answering questions a,b, at the very bottom. i really dont understand this from my homework A retailer experiences a seasonal demand pattern
i need help answering questions a,b, at the very bottom. i really dont understand this from my homework
A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow.
Period | 1 | 2 | 3 | 4 | 5 | 6 |
Requirement | 7 | 8 | 9 | 11 | 12 | 7 |
Costs associated with operations are as follows:
Wages = $2,000 per worker per month
Hiring cost = $1,000 per worker
Layoff cost = $1,500 per worker
Use the following table as a template to complete the necessary calculations. (Make necessary changes when needed)
1 | 2 | 3 | 4 | 5 | 6 | Total | |
Inputs | |||||||
Forecasted demand | |||||||
Workforce level | |||||||
Undertime | |||||||
Overtime | |||||||
Vacation time | |||||||
Subcontracting time | |||||||
Backorders | |||||||
Derived | |||||||
Utilized time | |||||||
Inventory | |||||||
Hires | |||||||
Layoffs | |||||||
Calculated | |||||||
Utilized time cost | |||||||
Undertime cost | |||||||
Overtime cost | |||||||
Vacation time cost | |||||||
Inventory holding cost | |||||||
Backorders cost | |||||||
Hiring cost | |||||||
Layoff costs | |||||||
Subcontracting cost | |||||||
Total cost |
The current workforce level is 10 workers. Use the spreadsheet approach and the preceding data to answer the following questions:
a. What is the total cost of a staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs, but no overtime?
b. What is the total cost of the staffing plan, using a level strategy in which no overtime is allowed and the undertime paid for?
c. Suppose that overtime is allowed up to 25% of the regular-time capacity, and that overtime wages are 150% of the regular-time rate. What is the total cost of the level strategy with overtime and undertime that also minimizes undertime?
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