Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 10, Problem 2P

Bob Canton’s golf camp estimates the following staff requirements for its services over the next 2 years.

Chapter 10, Problem 2P, Bob Canton’s golf camp estimates the following staff requirements for its services over the next 2

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 Canton $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 employees work in this capacity.

  1. Find a staffing plan using the level strategy that allows for no delay in service. It should rely only on overtime and the minimum amount of undertime necessary. What is the total cost of this plan?
  2. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
  3. Propose a better plan and calculate its total cost.

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PP.52 A manufacturer of solid state drives (SSDs) has projected the next six months of demand to be as shown the table below: Supply/Demand Info   Beginning        Jan           Feb           Mar           Apr           May           Jun      Forecast (demand)   53,800 53,400 51,000 63,800 49,200 59,000 Regular production               Overtime production               Subcontract production                      Ending inventory 4,000             Hired employees               Fired employees               Total employees 190             Cost variables are as follows: Cost Variables                           Labor cost/hour $16 Overtime cost/unit $39 Subcontracting cost/unit    $35 Holding cost/unit/month    $14 Hiring cost/employee $3,100 Firing cost/employee $5,500 Here is some additional relevant (capacity) information: Capacity Information                           Total labor hours/SSD 4 Regular production units/employee/month    200…
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PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars.  Due to a number of factors they like to plan their production at least six months into the future.  The table below contains their demand projections (in tons) for April through September: Supply/Demand Info   Beginning        Apr           May           Jun           Jul           Aug           Sep      Predicted Sales   45,500 45,100 51,900 52,800 47,900 47,200 Regular production               Overtime production               Subcontract production                      Ending inventory 14,400             Hired employees               Fired employees               Total employees 423             Cost variables are as follows: Cost Variables                           Labor cost/hour $13 Overtime cost/ton $30 Subcontracting cost/ton    $28 Holding cost/ton/month    $14 Hiring cost/employee $3,700 Firing cost/employee $5,800 Here is some additional…
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