Question: Only need help with b,c, and d A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow
Only need help with b,c, and d
A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow Period Requirement 1 7 2 8 3 9 4 11 5 12 6 7 Costs associated with operations are as follows: Wages = $2,000 per worker per month Hiring cost = $1,000 per worker Layoff cost = $1,500 per worker The current workforce level is 10 workers. Use the "spreadsheet approach and the preceding data to answer the following questions. (NOTE: You do not actually have to use a spreadsheet; you can use the "spreadsheet approach" in a Word table or similar format if you prefer ) a. What is the total cost of a staffing plan, including the cost of regular wages, hiring, and layoffs using a chase strategy with hiring and layoffs, but no overtime? b. What is the total cost of a staffing plan, using a level strategy in which no overtime is allowed and the undertime paid for? c. Suppose that overtime is allowed up to 25% of the regular-time capacity, and that overtime wages are 150% of the regular-time rate. What is the total cost of the level strategy with overtime and undertime that also minimizes undertime? As in part b assume that undertime must be paid for d. Which of these three plans would you recommend? Why
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