Bob Canton’s golf camp estimates the following staff requirements for its services over the next 2 years.
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.
- 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?
- Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this plan?
- Propose a better plan and calculate its total cost.
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Additional Business Textbook Solutions
Operations and Supply Chain Management 9th edition
Business in Action (8th Edition)
Operations Management, Binder Ready Version: An Integrated Approach
Principles Of Operations Management
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
- What is the meaning of customer service charter?arrow_forwardThe owner of a large machine ship has just finished its financial analysis from the prior fiscal year. The following is an excerps from the final report. Net revenue Cost of goods sold Value of production materials on hand $41,500 Value of work-in-process inventory $31,000 Value of finished goods on hand a. Compute the inventory turnover ratio (ITR). b. Compute the weeks of supply (WS). $22,500 $500,000 $328,250arrow_forwardPalisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months. Month Labor Cost Visitors 1 $ 26,720 2,600 2 $ 37,555 3,964 3 $ 41,361 4,299 4 $ 32,751 3,398 5 $ 36,022 3,630 6 $ 33,811 3,336 7 $ 33,139 3,372 8 $ 39,671 4,093 9 $ 39,912 4,222 10 $ 48,568 5,463 11 $ 43,627 4,551 12 $ 40,390 4,289 13 $ 35,644 3,694 14 $ 34,330 3,573 15 $ 38,260 3,836 16 $ 27,424 3,210 17 $ 31,732 5,195 18 $ 31,005 4,260 19 $ 28,552 3,689 20 $ 31,049 4,546 21 $ 26,588 3,058 22 $ 25,515 2,744 23 $ 29,899 4,997 24 $ 31,204 5,838 25 $ 29,099 3,964 26 $ 32,795 5,007 27 $ 29,650 4,572 28 $ 30,970 4,665 29 $ 29,429 3,841 30 $ 28,846 3,174 Required: a. Estimate the labor…arrow_forward
- Ashby Associates is an architectural firm located in Barbados that has been in practice only a few years. The market for architectural services is very competitive. To compete successfully, Ashby must deliver quality services at a low cost. Ashby presents the following data for 2018 and 2019.2018 20191. Number of jobs billed 40 502. Selling price per job $32,000 $30,0003. Architect labour hours 24,000 27,0004. Cost per architect labour hour $35 $365. Architect/software support capacity (number of jobs the firm can do) 60 606. Total cost of software-implementation support $168,000 $180,0007. Software-implementation support-capacity cost per job (row 6/row5) $2,800 $3,000Architect labor-hour costs are variable costs. Architect (software) support costs for each year depend on the Architect support capacity that Ashby chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. i. Is…arrow_forwardwhat six key steps is needed to take to ensure the operations system works at peak performance to satisfy customers needsarrow_forwardExamine the possible cash-flow issues and operational improvement possibilities of at least two front-end KPIs in the revenue-cycle dashboard of the chosen organization Area of the CycleKey Performance Indicator (KPI)Target: 100%January - MarchActualApril - JuneActualJuly - SeptemberActualOctober -DecemberActualFrontEndAccurate patient demographics (correct spelling of name, middle initial, address, phone number, date of birth) are collected at registration.89%(Color: Yellow)87%(Color: Yellow)92%(Color: Yellow)92%(Color: Yellow)Insurance is verified and insurance card is scanned or copied upon initial visit or admission.71%(Color: Red)68%(Color: Red)92%(Color: Yellow)75%(Color: Red)Required prior authorizations are obtained before procedures are scheduled.98%(Color: Green)99%(Color: Green)89%(Color: Yellow)85%(Color: Yellow)Patients without insurance or potential high out-of-pocket costs will be provided information about the organization’s financial assistance program at the time of…arrow_forward
- When attempting to assess efficiency, what are the calculation issues that arise?arrow_forwardSammy spent $10 on stationery. This was d dollars less than 4 times what she spent on dinner. How much did she spend on dinner?arrow_forwardRed Baron Airlines serves hundreds of cities each day, butcompetition is increasing from smaller companies affiliatedwith major carriers. One of the key competitive priorities ison-time arrivals and departures. Red Baron defines on time as any arrival or departure that takes place within 15 minutesof the scheduled time. To stay on top of the market, man-agement set the high standard of 98 percent on-time per-formance. The operations department was put in charge ofmonitoring the performance of the airline. Each week, a ran-dom sample of 300 flight arrivals and departures was checkedfor schedule performance. Table 3.6 contains the numbersof arrivals and departures over the last 30 weeks that did notmeet Red Baron’s definition of on-time service. Using three-sigma control limits based on 98 percent on time arrivalsor departures, what can you tell the management about thequality of service? Can you identify any nonrandom behaviorin the process? If so, what might cause the behavior?arrow_forward
- Subject : Accountingarrow_forwardPlease do not give solution in image format thanku Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT 49,500 cages Sales price: $3.50 per unit INPUT Production time 632 labor hours Wages $ 7.50 per hour Raw materials (total cost) $30,000 Component parts (total cost) $15,350 Find the total productivity in units sold and dollars of sales per dollar input. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.arrow_forwardonly the 2nd question needs to be answeredarrow_forward