Question

Tim Booker's tennis camp estimates the workforce requirements for its services over the next two years in the accompanying table.

Quarter 1 2 3 4 5 6 7 8

Demand(hours) 4,200 6,400 3,000 4,800 4,400 6,240 3,600 4,800

Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime.​ Regular-time wages and benefits cost Booker $ 7,200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of $ 20 per hour. Unused regular time for certified 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 is $ 10, 000. Layoff costs are $ 4,000 per employee. Currently 8 employees work in this capacity. Assume that Booker is permitted to employ some​ uncertified, part-time​ instructors, provided they represent no more than 15 percent of the total workforce hours in any quarter. Each​ part-time instructor can work up to 240 hours per​ quarter, with no overtime or undertime cost. Labor costs for​ part-time instructors are $12 per hour. Hiring and training costs are $1,750 per uncertified​ instructor, and there are no layoff costs.

a. Consider the following proposed​ low-cost, mixed-strategy​ plan:

Quarter	Demand (hours)	Workforce	Cert Hires	Cert Layoffs	Work Hours	PT Hires	PT Fires	Overtime (hours)
1	4200	9	1
2	6400	10	1		720	3		880
3	3000	8		2			3
4	4800	8			720	3		240
5	4400	8			560
6	6240	10	2		720			720
7	3600	8		2			3
8	4800	8			720	3		240
Total		69	4	4		9	6	2080

Total cost for this plan would be ​$ __ . (Enter your response as an​ integer.)

b. Use the table to find the total cost of the plan using the chase strategy. The total cost of the plan using the chase strategy is ___.

Answer 1

The total cost for this plan would be $651430

Part A
Quarter	Demand (hrs)	Workforce	Hired	Fired	PT Work hours	PT Hires	Overtime hours	Regular hours cost = 7200 * Workforce numbers	hire cost = 10000*# Hired	Layoff = 4000*# Fired	PT labor cost = 12*PT hours	PT hire cost = 1750* PT hires	Overtime hours cost = 20*Overtime hours	Total
1	4200	9.00	1	0	0	0	0	$                          64,800.00	$                        10,000.00	$                                -	$                                -	$                                -	$                                -
2	6400	10.00	1	0	720	3	880	$                          72,000.00	$                        10,000.00	$                                -	$                   8,640.00	$                   5,250.00	$                 17,600.00
3	3000	8.00	0	2	0	0	0	$                          57,600.00	$                                        -	$                   8,000.00	$                                -	$                                -	$                                -
4	4800	8.00	0	0	720	3	240	$                          57,600.00	$                                        -	$                                -	$                   8,640.00	$                   5,250.00	$                   4,800.00
5	4400	8.00	0	0	560	0	0	$                          57,600.00	$                                        -	$                                -	$                   6,720.00	$                                -	$                                -
6	6240	10.00	2	0	720	0	720	$                          72,000.00	$                        20,000.00	$                                -	$                   8,640.00	$                                -	$                 14,400.00
7	3600	8.00	0	2	0	0	0	$                          57,600.00	$                                        -	$                   8,000.00	$                                -	$                                -	$                                -
8	4800	8.00	0	0	720	3	240	$                          57,600.00	$                                        -	$                                -	$                   8,640.00	$                   5,250.00	$                   4,800.00
		69.00	4	4	3440	9	2080	$                       496,800.00	$                        40,000.00	$                16,000.00	$                41,280.00	$                15,750.00	$                 41,600.00	$   651,430.00
								1	2	3	4	5	6	(1+2+3+4+5+6)

Chase Strategy , Hiring and firing each quarter. Note employees cannot be in decimals and hence we have rounded off for calculations.

Chase strategy, initial workers = 8
Quarter	Demand (hrs)	Workforce required = Demand / Regular hours 480	Workforce rounded off	Hired (Initial hiring = 9 - 8)	Fired	Regular hours cost = 7200 * Workforce numbers	hire cost = 10000*# Hired	Fire cost = 4000*# Fired	Total
1	4200	8.75	9.00	1	0	$                          64,800.00	$                        10,000.00	$                                -
2	6400	13.33	14.00	5	0	$                       100,800.00	$                        50,000.00	$                                -
3	3000	6.25	7.00	0	7	$                          50,400.00	$                                        -	$                28,000.00
4	4800	10.00	10.00	3	0	$                          72,000.00	$                        30,000.00	$                                -
5	4400	9.17	10.00	0	0	$                          72,000.00	$                                        -	$                                -
6	6240	13.00	13.00	3	0	$                          93,600.00	$                        30,000.00	$                                -
7	3600	7.50	8.00	0	5	$                          57,600.00	$                                        -	$                20,000.00
8	4800	10.00	10.00	2	0	$                          72,000.00	$                        20,000.00	$                                -
						$                       583,200.00	$                      140,000.00	$                48,000.00	$              771,200.00