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, 12,500, 19,500, and 9,000, respectively. 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 $3,300, 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.) Part 2 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? $915600. (Enter your response as an integer.) Part 3 How many undertime hours does it call for? ___enter your response here hours. (Enter your response as an integer)
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, 12,500, 19,500, and 9,000, respectively. 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 $3,300, 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.) Part 2 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? $915600. (Enter your response as an integer.) Part 3 How many undertime hours does it call for? ___enter your response here hours. (Enter your response as an integer)
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...
Related questions
Question
please answer both the parts within 30 minutes with detailed explanation
Transcribed Image Text: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, 12,500, 19,500, and 9,000, respectively. 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
$3,300, 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.)
Part 2
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? $915600.
(Enter your response as an integer.)
Part 3
How many undertime hours does it call for? ___enter
your response here hours. (Enter your response as an
integer.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.