Question

3) Training Programs, Revisited As part of a quality improvement initiative, Consolidated Elec- tronics employees complete a three-day training program on teaming and a two-day training program on problem solving. The manager of quality improvement requested that at least 10 training programs on teaming and at least 10 training programs on problem solving be offered during the next six months. In addition, senior-level management specified that at least a total of 25 training programs must be offered during this period. Consolidated Electronics uses a consultant to teach the training programs. During the next six months, the consultant has 64 days of training time available. Each training program on teaming costs $12,000 and each training program on problem solving costs $6,000.

(a) How many training programs of each type should be offered? What would be the total cost of this? (3 points)

(b) Would the optimal number of training programs for each type change if the cost of problem solving trainings went up by $5000? Why or why not? (2 points).

(c) If management decided to relax the total number of trainings necessary by 3 to only 22 total trainings, what would you expect the reduction in cost to be? (2 points)

Answer 1

ANSWER A

Lead Time to Complete One Program		Minimum Number of Programs			Total Days Consumed							Additional Programs		Total Costs
Teaming	Problem Solving	Teaming	Problem Solving	Total	Teaming	Problem Solving	Total	Allocated Days	Remaing Days	Programs Remianing	Lead Time Available per program	Teaming	Problem Solving	Teaming	Problem Solving	TOTAL
3	2	10	10	25	30	20	50	64	14	5	2.8	0	5	120000	90000	210000

ANSWER B

The optimal number will be same as above

Total Teaming Training - 10

Total Problem Solving Training - 15

ANSWER C

Lead Time to Complete One Program		Minimum Number of Programs			Total Days Consumed							Additional Programs		Total Costs
Teaming	Problem Solving	Teaming	Problem Solving	Total	Teaming	Problem Solving	Total	Allocated Days	Remaing Days	Programs Remianing	Lead Time Available per program	Teaming	Problem Solving	Teaming	Problem Solving	TOTAL
3	2	10	10	22	30	20	50	64	14	2	7	0	2	120000	72000	192000

Savings in Cost = $210,000 - $192,000

= $18,000