Question
The Cranston Telephone company employs workers who ley telephone cables and perform various other construction tasks. The company prides itself on good service and strives
The Cranston Telephone company employs workers who ley telephone cables and perform various other construction tasks. The company prides itself on good service and strives to complete all service order within the planning period in which they are received.
Each worker puts in 600 hours of regular time per planning period and work as many as an additional 100 hours of overtime. The operations department has estimated the following staff requirements for such services over the next four planning periods:
Planning Period: 1 2 3 4
Demand (hours): 21,000 18,000 30,000 12,000
Cranston pays regular-time wages of $6000 per employee per period for any time worked up to 600 hours (including under time). The overtime rate is $15 per hour 600 hours. Hiring, training and outfitting a new employee costs $8000. Layoffs costs are $2000 per employee. Currently 40 employees work for Cranston in this capacity. No delays in service, or backorders, are allowed.
Develop an aggregate plan using LEVEL and CHASEproduction strategy at minimum cost. Which one you will select?
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