PharmaPlus operates a chain of 30 pharmacies. The pharmacies are staffed by licensed pharmacists and pharmacy technicians. The company currently employs 85 full-time-equivalent pharmacists (combination of full time and part time) and 175 full-time-equivalent technicians. Each spring management reviews current staffing levels and makes hiring plans for the year. A recent forecast of the prescription load for the next year shows that at least 250 full-time-equivalent employees (pharmacists and technicians) will be required to staff the pharmacies. The personnel department expects 10 pharmacists and 30 technicians to leave over the next year. To accommodate the expected attrition and prepare for future growth, management states that at least 15 new pharmacists must be hired. In addition, PharmaPlus’s new service quality guidelines specify no more than two technicians per licensed pharmacist. The average salary for licensed pharmacists is $40 per hour and the average salary for technicians is $10 per hour. Determine a minimum-cost staffing plan for PharmaPlus. How many pharmacists and technicians are needed? Given current staffing levels and expected attrition, how many new hires (if any) must be made to reach the level recommended in part (a)? What will be the impact on the payroll?

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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PharmaPlus operates a chain of 30 pharmacies. The pharmacies are staffed by licensed pharmacists and pharmacy technicians. The company currently employs 85 full-time-equivalent pharmacists (combination of full time and part time) and 175 full-time-equivalent technicians. Each spring management reviews current staffing levels and makes hiring plans for the year. A recent forecast of the prescription load for the next year shows that at least 250 full-time-equivalent employees (pharmacists and technicians) will be required to staff the pharmacies. The personnel department expects 10 pharmacists and 30 technicians to leave over the next year. To accommodate the expected attrition and prepare for future growth, management states that at least 15 new pharmacists must be hired. In addition, PharmaPlus’s new service quality guidelines specify no more than two technicians per licensed pharmacist. The average salary for licensed pharmacists is $40 per hour and the average salary for technicians is $10 per hour.

Determine a minimum-cost staffing plan for PharmaPlus. How many pharmacists and technicians are needed?

Given current staffing levels and expected attrition, how many new hires (if any) must be made to reach the level recommended in part (a)? What will be the impact on the payroll?

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