Bob Carlton's golf camp estimates the following workforce requirements for its services over the next two years.
Quarter 1 2 3 4
Demand (hours) 4200 6400 3000 4800
Quarter 5 6 7 8
Demand (hours) 4400 6240 3600 4800
Each certified instructor puts in 480 hours per quarter regular time and can work an additiional 120 hours overtime. Regular time wages and benefits cost Carlton $7200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $20 per hour. Unused regular time for cerified instructors is paid at $15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training and certifying a new employee $10000. Layoff costs are $4000 per employee. Currently eight employees work in this capacity.
a. Find a workforce plan using the level strategy that allows for no delay in service. It should rely only on overtime and the minimum amount of undertime necessary. What is the total cost of this plan?
b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
c. Propose a better plan and calculate its total cost.