A large distribution center uses some part$-$time employees in its workforce. Each

part$-$time employee works a maximum of $80$ hours per month. The workforce

requirements $($expressed as the number of part$-$time employees working the

maximum regular time of $80$ hours per month$)$ are given in the following table for the

next six periods.

Inputs

Derived

Costs

The relevant costs are:

Wages $=$$$1,\frac{000}{?}$ month $\frac{?}{?}$ worker

Hiring cost $=$$$\frac{250}{?}$ worker

Layoff cost $=$$$\frac{350}{?}$ worker

Overtime cost $=195\%$ of regular$-$time rate

The current workforce level is $75,$ and overtime cannot exceed $50\%$ of regular$-$time

capacity.

Using this information, answer the following questions.

Use a level strategy with overtime and undertime. Minimize undertime by maximizing

overtime during the peak period. If the firm does not pay undertime, what is the total

cost of the staffing plan including the cost of regular wages, hiring, and layoffs?

$$392,750$

$$388,550$

$$325,250$

$$193,000$

$$425,750$

$$418,000$

$$192,550$

$$168,250$