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Author Question: A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical ... (Read 118 times)

kfurse

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A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow.

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
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 the 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, which also minimizes undertime?


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Marked as best answer by kfurse on Apr 18, 2020

aidanmbrowne

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kfurse

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Reply 2 on: Apr 18, 2020
YES! Correct, THANKS for helping me on my review


sultana.d

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Reply 3 on: Yesterday
Excellent

 

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