Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. For the following question.

The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area.

image text in transcribed

For the following question. Include your derivation steps and explanation in text. You will not be awarded points if you are missing the derivation steps and just write the answer, unlike the earlier assignment 1. Expect : Mid-term 2 exam. Appreciate your own words on the assignments, please avoid any copy-paste. The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city bud-get. Kramer estimates that the labor hours required for the next four quarters are 6,000,12,000,19,000, and 9,000 , respectively. Each of the 11 workers on the work-force can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $18 for each overtime hour. Overtime is limited to 20 percent of the regulartime capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,000, and the cost of laying off a worker is $2,000. Subcontracting is not permitted. a. Find a level staffing plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of the plan and how many undertime hours does it call for? [0.5 point] b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan? [0.25 point] c. Propose a plan of your own. Compare your plan with those in parts (a) and (b), and discuss its comparative merits. [0.25 point]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management

Authors: Richard L. Lynch

6th Edition

978-0273750925

More Books

Students also viewed these General Management questions