Concept explainers
Interpretation:
Requirement of number of FTE staff in May through August.
Concept Introduction:
FTE is (Full time equivalent) is the number of hours a full time employee works in a stipulated time period. It shows an average hours for work.
Explanation of Solution
Variables used to calculate FTE staff are:
- Month
- Number of days in a month
- Average
forecast of a month - Percentage in product mix
Formula to be used are:
.
For the four-month time horizon, the mix percentages will remain the same as given.
Month | May | |||
Working days | 22 | |||
Total forecast | 750 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 165.00 | 3.60 | 594.00 |
2 | 17 | 127.50 | 2.00 | 255.00 |
3 | 13 | 97.50 | 1.70 | 165.75 |
4 | 12 | 90.00 | 5.50 | 495.00 |
5 | 10 | 75.00 | 4.00 | 300.00 |
6 | 9 | 67.50 | 3.00 | 202.50 |
7 | 7 | 52.50 | 2.00 | 105.00 |
8 | 5 | 37.50 | 2.00 | 75.00 |
9 | 3 | 22.50 | 1.50 | 33.75 |
10 | 2 | 15.00 | 4.00 | 60.00 |
Total | 100 | 750 | 2286 | |
Required # of workers | 15 |
Month | June | |||
Working days | 20 | |||
Total forecast | 825 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 181.50 | 3.60 | 653.40 |
2 | 17 | 140.25 | 2.00 | 280.50 |
3 | 13 | 107.25 | 1.70 | 182.33 |
4 | 12 | 99.00 | 5.50 | 544.50 |
5 | 10 | 82.50 | 4.00 | 330.00 |
6 | 9 | 74.25 | 3.00 | 222.75 |
7 | 7 | 57.75 | 2.00 | 115.50 |
8 | 5 | 41.25 | 2.00 | 82.50 |
9 | 3 | 24.75 | 1.50 | 37.13 |
10 | 2 | 16.50 | 4.00 | 66.00 |
Total | 100 | 825 | 2514.6 | |
Required # of workers | 18 |
Month | July | |||
Working days | 22 | |||
Total forecast | 900 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 198.00 | 3.60 | 712.80 |
2 | 17 | 153.00 | 2.00 | 306.00 |
3 | 13 | 117.00 | 1.70 | 198.90 |
4 | 12 | 108.00 | 5.50 | 594.00 |
5 | 10 | 90.00 | 4.00 | 360.00 |
6 | 9 | 81.00 | 3.00 | 243.00 |
7 | 7 | 63.00 | 2.00 | 126.00 |
8 | 5 | 45.00 | 2.00 | 90.00 |
9 | 3 | 27.00 | 1.50 | 40.50 |
10 | 2 | 18.00 | 4.00 | 72.00 |
Total | 100 | 900 | 2743.2 | |
Required # of workers | 18 |
Month | July | |||
Working days | 22 | |||
Total forecast | 775 | |||
Products | Product Mix (%) | No. of files | Hours per file | Hours |
1 | 22 | 170.50 | 3.60 | 613.80 |
2 | 17 | 131.75 | 2.00 | 263.50 |
3 | 13 | 100.75 | 1.70 | 171.28 |
4 | 12 | 93.00 | 5.50 | 511.50 |
5 | 10 | 77.50 | 4.00 | 310.00 |
6 | 9 | 69.75 | 3.00 | 209.25 |
7 | 7 | 54.25 | 2.00 | 108.50 |
8 | 5 | 38.75 | 2.00 | 77.50 |
9 | 3 | 23.25 | 1.50 | 34.88 |
10 | 2 | 15.50 | 4.00 | 62.00 |
Total | 100 | 775 | 2362.2 | |
Required # of workers | 16 |
In summary, the FTEs required can be written in the following table:
Month | FTE |
May | 15 |
Jun | 18 |
Jul | 18 |
Aug | 16 |
Want to see more full solutions like this?
- OPERATIONS PLANNING AND SCHEDULING (OP&S) What [Demand Management] methods are generally the most effective and reliable, regarding OP&S, and what are the visible benefits and any fundamental weaknesses of those methods?arrow_forwardPlease help with this Thanksarrow_forwardDeb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. Click the icon to view the four-quarter forecast. Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). More Info Hiring and Layoff Plan Hire Layoff Quarter Forecast Production (Units) (Units) 1,600 1 1,400 1400 0 200 2 1,000 1,000 0 400 3 1,600 1,600 600 0 4 1,200 ☑ More Info Previous quarter's output Beginning inventory Stockout cost for backorders Inventory holding cost Hiring workers Layoff workers Unit cost Overtime Subcontracting Costs 1,600 units $45 per unit O units $11 per unit for every unit held at the end of the quarter $50 per…arrow_forward
- describe what is the purpose of the Gantt chart as a scheduling tool and when do they using a Gantt chart instead of a network based method?arrow_forwardCapacity planning requires a demand forecast for an extended period of time into the future. What concerns would you have regarding an extended forecast as a capacity planner?arrow_forwardDeb Bishop Health and Beauty Products has developeda new shampoo, and you need to develop its aggregate schedule.The cost accounting department bas supplied you the costsrelevant to the aggregate plan, and the marketing department hasprovided a four-quarter forecast. All are shown as follows: Your job is to develop an aggregate plan for the next four quarters.a) First, try hiring and layoffs (to meet the forecast) as necessary.b) Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Healthand Beauty Products?arrow_forward
- Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?arrow_forwardDeb Bishop Health and Beauty Products has developed a new shampoo and you need to develop its aggregate schedule. The cost accounting department has supplied you the cost relevant to the aggregate plan and the marketing department has provided a four-quarter forecast. E Click the icon to view the four-quarter forecast. E Click the icon to view the costs relevant to the aggregate plan. Your job is to develop an aggregate plan for the next four quarters. a) Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Hiring and Layoff Plan Layoff (Units) Hire Quarter Forecast Production (Units) 1,500 1 1,400 Costs Previous quarter's output Beginning inventory 1,500 units O units $45 per unit $9 per unit for every unit held at the end of the quarter $40 per unit $70 per unit $35 per unit $20 extra per unit Stockout cost for backorders Inventory holding cost Quarter Forecast Hiring workers Layoff workers Unit cost 1 1,400 1,000 1,600 3 Overtime 4…arrow_forwardDescribe the process of capacity planning in IT resource management and the importance of scaling resources to meet demand.arrow_forward
- Given the projected demands for the next six months, prepare aggregate plan must wind up with no units in ending inventory in Period 6. Regular time capacity is 150 units per month. Overtime cost is $20 per unit, backorder cost is $30 per unit, inventory holding cost is $10 per unit based on maximum, subcontracting cost is $40 per unit, regular time cost of $20 per unit, and beginning inventory is 10. Month 1 2 3 45 6 Forecast 150 170 140 160 130 160 a. Prepare an aggregate plan with inventory and backlog allowed. Overtime and subcontracting are not allowed. b. Prepare an aggregate plan if the management decided to switch to chase strategy. They only allow backlog if absolutely needed. Regular production capacity is now 160.arrow_forwardExplain what is the purpose of the Gantt chart as a scheduling tool and when they use a Gantt chart instead of a network based method?arrow_forwardWeighted moving average using Excel:3.1 Calculate demand forecast for weeks 7-24 using 6 week weighted moving average with weights 0.55, 0.1, 0.1, 0.1, 0.1, 0.053.2 Calculate demand forecast for weeks 7-24 using 6 week weighted moving average with weights 0.2, 0.2, 0.2, 0.15, 0.15, 0.13.3 Plot the two weighted moving average forecasts together with the actual demand. Comment on the obtained graph.3.4 Using the forecasting error measures seen in class, evaluate the forecasting error of each method. Accordingly which method is better?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.