A retailer experiences a seasonal demand pattern for its


A retailer experiences a seasonal demand pattern for its services. Labor requirements over a typical six-month period follow. Period 1 2 3 4 5 6 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 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? a) Prepare a staffing plan using Chase Strategy Period 1 2 3 4 5 6 Total Forecasted demand (workers) 7 8 9 11 12 7 Workforce level (workers) -3 1 1 2 1 -5 Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) Total Cost = b) Prepare a staffing plan using Level Strategy without Overtime Period 1 2 3 4 5 6 Total Forecasted demand (workers) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) Total Cost = c) Prepare a staffing plan using Level Strategy with Overtime Period 1 2 3 4 5 6 Total Forecasted demand (workers) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) Total Cost =

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Operation Management: A retailer experiences a seasonal demand pattern for its
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