Question: 2. Aggregate planning can be used in services, when there are no inventories. This question deals with such a situation: Kitty Forrest's golf camp estimates

2. Aggregate planning can be used in services, when there are no inventories. This question deals with such a situation: Kitty Forrest's golf camp estimates the following workforce requirements over the next two years: Quarter 1 2 3 4 5 6 7 8 Demand (hours) 4200 6400 3000 4800 4400 6240 3600 4800 Each certified instructor puts in 480 hours per quarter regular time and can work up to 120 hours overtime. Regulartime wages and benefits cost Forrest $7200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for certified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training and certifying a new employee is $10,000. Layoff costs are $4000 per employee. There are currently 8 employees under contract. 3. Find a level workforce plan that allows for no delay in service and minimizes undertime. What is the total cost of this plan? b. Use a chase strategy that varies the workforce level with minimal undertime and without using overtime. What is the total cost of this plan? c. Propose a low-cost, mixed strategy and calculate its total cost. (Any strategy that improves on both the chase and level strategies is acceptable; no need to find the optimal schedule.) c. Propose a low-cost, mixed strategy and calculate its total cost. (Any strategy that improves on both the chase and level strategies is acceptable; no need to find the optimal schedule.)

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