Allen Furniture is a manufacturer of hand-crafted furniture. At the start of January, Allen employs 21 trained craftspeople. They have forecasted their labor needs over the next 12 months as shown in the following table. Each trained craftsperson provides 200 labor- hours per month and is paid a wage of $3,000 per month. Hiring new craftspeople requires advertising, interviewing, and then training at a cost of $2,500 per hire. New hires are called apprentices for their first month. Apprentices spend their first month observing and learning. They are paid $2,000 for the month, but provide no labor. In their second month, apprentices are reclassified as trained craftspeople. The union contract allows for firing a craftsperson at the beginning of a month, but $1,500 must be given in severance pay. Moreover, at most 10 percent of the trained craftspeople can be fired in any month. Allen would like to start next year with at least 25 trained craftspeople.
Allen Furniture is a manufacturer of hand-crafted furniture. At the start of January, Allen employs 21 trained craftspeople. They have forecasted their labor needs over the next 12 months as shown in the following table. Each trained craftsperson provides 200 labor- hours per month and is paid a wage of $3,000 per month. Hiring new craftspeople requires advertising, interviewing, and then training at a cost of $2,500 per hire. New hires are called apprentices for their first month. Apprentices spend their first month observing and learning. They are paid $2,000 for the month, but provide no labor. In their second month, apprentices are reclassified as trained craftspeople. The union contract allows for firing a craftsperson at the beginning of a month, but $1,500 must be given in severance pay. Moreover, at most 10 percent of the trained craftspeople can be fired in any month. Allen would like to start next year with at least 25 trained craftspeople.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Please calculate the correct values for apprentices hired and craftspeople fired for each month, also calculate the total cost, thank you!
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