Question

The Restwell Motel in Orlando, Florida, is preparing an aggregate plan for the upcoming year. The motel has a maximum of 200 rooms, which are fully utilized in the winter months but mostly vacant during the summer, as shown in the schedule below. Demand is listed in terms of rooms. The motel requires one employee, paid $1500 per month, for each 20 rooms rented on regular time. It can utilize up to 20 percent overtime at time and a half and also can hire part-time workers at $1200 per month. The regular-time workers are hired at a cost of $500 and laid off at a cost of $200 per worker. There is no hiring and layoff cost for the part-time workers.
a. With a regular workforce of six employees and 20 percent overtime when needed, how many part-time workers are required in each month and how much does this strategy cost per year?
b. What is the best strategy to follow if a level workforce of six regular workers is used? You may use various amounts of overtime and part-time workers.


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  • CreatedSeptember 20, 2015
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