The Barberton Municipal division of Road Maintenance is charged with road repair
ID: 2339155 • Letter: T
Question
The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 7,000, 12,000,19,500 and 10,000. Each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $17 for each overtime hour. Overtime is limited to 20 percent of the regular-time capacity in any quarter. Although unused overtime capacity has no cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3,200, and the cost of laying off a worker is $1,400. Subcontracting is not permitted. (Hint: When calculating the number of workers, make sure to round up to the next whole number before proceeding with any further calculations.)
a. Find a level workforce plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of the plan?
b. How many undertime hours does this strategy call for?
c. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
(Enter your response as an integer.)
Explanation / Answer
Q. (a)
Q (b) Thre is no undertime hours call required
Q (c)
Quarter (Qtr) Q1 Q2 Q3 Q4 Estimate Hours/Qtr 7000 12000 19500 1000 Standard (Std) workers 11 11 11 11 Std hrs 500 500 500 500 Std hrs/Qrt (11*500) 5500 5500 5500 5500 Over Time hrs required (estimate-Std hrs) 1500 6500 14000 4500 Over time value ($17*OT hrs) 2318 10045 21636 6955 Regular time value/11 workers (11*6000) 66000 66000 66000 66000 Total value (OT+regular time value) 68318 76045 87636 72955 Hiring cost/worker 0 3200 9600 3200 Total Cost 68318 79245 97236 76155 No. workers to be hired 0 1 3 1Related Questions
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