Find a workforce plan using the level strategy

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Reference no: EM1382747

Q. 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) 4,200 6,400 3,000 4,800
Quarter 5 6 7 8
Demand (hours) 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 over time. Regular-time wages and benefits cost Carlton $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, eight workers work in this capacity.

a. Find a workforce plan using the level strategy which allows for no delay in service. It should rely only on overtime and the minimum amount of under time necessary. Illustrate what is the total cost of this plan?

b. Use a chase strategy which varies the workforce level without using overtime or under time. Illustrate what is the total cost of this plan?

c. Propose a better plan and calculate its total cost.

Reference no: EM1382747

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