A Unit Manager estimates the nursing hours requirements for its services over the next two years in the table below.

Quarter 1 2 3 4 5 6 7 8

Demand 4,200 6,400 3,000 4,800 4,400 6,240 3,600 4,800

Each RN puts in 480 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost $ 17,500 per RN per quarter for regular time worked up to 480 hours, with an overtime cost of $50 per hour. Unused regular time for RNs is paid at $35 per hour. There is no cost for unused overtime capacity. The cost of hiring, training, and certifying a new RN is $10,000. Layoff costs are $4,000 per RN. Currently 8 RNs work in this capacity.

Assume that Carlton is permitted to employ some LPNs, provided they represent no more than 15 percent of the total nursing hours in any quarter. Each part-time LPN can work up to 240 hours perquarter, with no overtime or under-time cost. Labor costs for part-time LPNs are $20 per hour. Hiring and training costs are $1,750 per LPN, and there are no layoff costs.

Develop a model and evaluate the following alternatives with respect to

TOTAL COSTS

Advantages/Disadvantages from employee satisfaction / workforce performance & quality perspectives

A level staffing plan

A chase-strategy staffing plan

A mixed-strategy plan of your own design

Consider the following proposed low-cost, mixed-strategy plan:

Deliverables:

1) Three separate tables for solution to parts a-c. Your solution must be completed by proof that they comply with the 15% and 240 hrs constraints

2) Qualitiative considerations for each of the plans in parts a-d (1-2 paragraphs each)