Problem $3$

The workforce requirements $($expressed as the number of employees needed$)$ at a package sorting center are given in the following table for the next six periods. The relevant costs are:

Wages $=$$$\frac{5000}{?}$ month$/$worker

Hiring cost $=$$$\frac{500}{?}$ worker

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

Overtime cost $=150\%$ of regular$-$time rate

The current workforce level is $30,$ and overtime cannot exceed $25\%$ of regular$-$time capacity.

For a level strategy in this service example:

a$.$ What particular piece of information helps you decide the number of workers needed?

b$.$ What is the number of workers needed if maximum overtime is used?

c$.$ Provide the complete level strategy if maximum overtime is used?

$\backslash$table$[[,$Month$],[$Plan:$,1,2,3,4,5,6],[\backslash$table$[[$Forecasted demand $($# of$],[$workers$)]],35,35,50,50,40,40],[$Workforce planned,,,,,,$],[$Hires planned,,,,,,$],[$Layoffs planned,,,,,,$],[$Overtime planned,,,,,,$]]$

Prepare a plan using a chase strategy for the above forecast. What is the cost of the plan?

$\backslash$table$[[,$Month$],[$Plan:$,1,2,3,4,5,6],[\backslash$table$[[$Forecasted demand $($# of$],[$workers$)]],35,35,50,50,40,40],[$Workforce planned,,,,,,$],[$Hires planned,,,,,,$],[$Layoffs planned,,,,,,$]]$

Cost: