Question: please make sure all the boxes get filled out Sales and Operations Planning Case: The Barberton Municipal (Revisited) The Barberton Municipal Division of Road Maintenance
please make sure all the boxes get filled out
Sales and Operations Planning Case: The Barberton Municipal (Revisited) The Barberton Municipal Division of Road Maintenance is charged with road repair in Barberton and the surrounding area. Vijay Gupta, road maintenance director, must submit a staffing plan for the next year based on a schedule for repairs and the city budget. Gupta estimates that the labor hours required for the next four quarters are 24,000,12,000,19,000, and 14,000 , respectively. Each of the 10 workers in the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $18 for each overtime hour. Overtime is limited to 20 percent of the regulartime capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,000, and the cost of laying off a worker is $2,000. Subcontracting is not permitted. a) Develop a Sales and Operations plan using a chase strategy that varies the workforce level without using overtime or undertime. a. The chase strategy: b) What is the total cost of your chase plan
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