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Quarter 1 2 3 4 5 6 7 8 Demand ( hours ) 4 , 2 0 0 6 , 4 0 0 3 ,

Quarter
1
2
3
4
5
6
7
8
Demand(hours)
4,200
6,400
3,000
4,800
4,400
6,240
3,600
4,800
Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost Carlton $7,200 per employee per quarter for regular time worked up to 480hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is $10,000. Layoff costs are $4,000 per employee. Currently 8 employees work in this capacity.
Assume that Carlton is permitted to employ some uncertified, part-time instructors, provided they represent no more than 15 percent of the total workforce hours in any quarter. Each part-time instructor can work up to 240 hours per quarter, with no overtime or undertime cost. Labor costs for part-time instructors are $11 per hour. Hiring and training costs are $1,750 per uncertified instructor, and there are no layoff costs.
Part 3
a. Consider the following proposed low-cost, mixed-strategy plan:
Quarter
Demand
(hours)
Workforce
Cert Hires
Cert Layoffs
PT Work Hours
PT Hires
PT Fires
Overtime
(hours)
1
4,200
9
1
2
6,400
10
1
720
3
880
3
3,000
8
2
3
4
4,800
8
720
3
240
5
4,400
8
560
6
6,240
10
2
720
720
7
3,600
8
2
3
8
4,800
8
720
3
240
Total
69
4
4
3,440
9
6
2,080
Total cost for this plan would be ?
Having a workforce consisting of both regular and temporary employees
A.
reduces overtime.
B.
reduces total costs.
C.
reduces hiring and firing of certified instructors.
D.
a and b only.
E.
b and c only.
F.
all of the above.

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