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}{m}$ont$\frac{h}{?}$ 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?

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

of the plan?

Cost: