1. Set up this problem as an aggregate planning problem and determine the minimum cost plan. Briefly...
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2. What factors, other than cost, should be considered in this aggregate planning? Explain.
Lands’ End is a mail and phone order company for clothes.
Like other retailers, its sales surge close to Christmas. The full-time equivalent (FTE) employee requirements for October to December of last year were as follows: October: 4,000 FTE, November: 6,600 FTE, and December: 7,100 FTE. Lands' End employs 4,000 FTE employees throughout the year (3,500 full time and 1,000 half-time). During November and December, Lands' End can employ up to 1,500 additional FTE part-time and temporary' workers (high school students and idle workers from a local cheese factory). Also, Lands’ End can use tip to 2,000 FTE of overtime work (hours worked beyond an eight-hour shift in a day). Each FTE permanent employee receives $3,000 a month. Each FTE of overtime work receives $4,500 a month. Each Temporary' FTE of part-time and temporary workers receives $3,000 a month, but needs an average of $1,000 of training (charged to the first month of employment).
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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