11) Land's End is a mail and phone order company for clothes. Like other retailers, its...

 

Transcribed Image Text:

11) Land's 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: 6,000 FTE, and December: 7,100 FTE. Land's End employs 4,000 FTE throughout the year (3,500 full time and 1,000 half-time). During November and December, Land's 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, Land's End can use up 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 training) charged to the first month of employment). a) Set up this problem as an aggregate planning problem and determine the minimum cost plan. b) Briefly state the trade-off analysis you used. c) What factors, other than cost, should be considered in this plain? Explain. 11) Land's 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: 6,000 FTE, and December: 7,100 FTE. Land's End employs 4,000 FTE throughout the year (3,500 full time and 1,000 half-time). During November and December, Land's 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, Land's End can use up 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 training) charged to the first month of employment). a) Set up this problem as an aggregate planning problem and determine the minimum cost plan. b) Briefly state the trade-off analysis you used. c) What factors, other than cost, should be considered in this plain? Explain.

Answer rating: 100% (QA)

Solution a Assuming the projected demand for Oct Nov and Dec will remain same as last year calculations for both the scenarios are as shown below Solu... View the full answer