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Bob Carlton's golf camp estimates the following workforce requirements for its services over the next two years:
Quarter: 1 2 3 4 5 6 7 8
Demand (hrs): 4400, 6600, 3100, 4800, 4600, 6300, 3700, 4900
Each certified instructor puts in 500 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost Carlton $7200 per employee per quarter for regular time worked up to 500 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 $10000. Layoff costs are $4000 per employee. Currently 8 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 under time necessary. What is the total cost of the plan? $____
b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan? $____
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