Question: Process improvement question A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. 1 2 3 4

Process improvement question A retailer

Process improvement question

A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. 1 2 3 4 5 6 Period Requirement 7 8 9 11 12 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: 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 the 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

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