The Flying Frisbee Company has forecasted the following staffing requirements for full-time employees. Demand is seasonal, and management wants three alternative staffing plans to be developed.

The company currently has 10 employees. No more than 10 new hires can be accommodated in any month because of limited training facilities. No backorders are allowed, and overtime cannot exceed 25 percent of regular-time capacity in any month. There is no cost for unused overtime capacity Regular-time wages are $1,500 per month, and overtime wages are 150 percent of regular-time wages. Under time is paid at the same rate as regular time. The hiring cost is $2,500 per person and the layoff cost is $2,000 per person.
a. Prepare a staffing plan utilizing a level workforce strategy minimizing under time the plan may call for a one-time adjustment of the workforce before month 1.
b. Using a chase strategy as much as possible, prepare a plan that is consistent with the constraint on hiring and minimizes use of overtime.
c. Prepare a low-cost, mixed-strategy plan.
d. Which strategy is most cost-effective? What are the advantages and disadvantages of eachplan?

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