Problem 18:
a.
|
Week |
1 |
2 |
3 |
4 |
5 |
6 |
Total |
|
Number of Clients |
48 |
36 |
50 |
40 |
38 |
48 |
|
|
Service hours |
576 |
432 |
600 |
480 |
456 |
576 |
3120 |
|
Needed |
|
|
|
|
|
|
|
|
Number of |
15 |
11 |
15 |
12 |
12 |
15 |
80 |
|
Employees Needed |
|
|
|
|
|
|
|
|
Number of Hires |
3 |
0 |
4 |
0 |
0 |
3 |
10 |
|
Number of Fires |
0 |
4 |
0 |
3 |
0 |
0 |
7 |
b. Total Cost = Regular-time Labor Cost + Hiring Cost + Firing Cost
Total Cost = (3200 hours)($25/hour) + (10 hires)($2000) + (7 fires)($1200) = $108,400
c. This plan costs $108,400. Customer demands are met. From an operational and human resources perspectives, this plan is difficult to implement as required resources fluctuate from period to period.
Problem 20:
a.
|
Week |
1 |
2 |
3 |
4 |
5 |
6 |
Total |
|
Number of Clients |
48 |
36 |
50 |
40 |
38 |
48 |
|
|
Service hours |
576 |
432 |
600 |
480 |
456 |
576 |
3120 |
|
Needed |
|
|
|
|
|
|
|
|
Number of |
12 |
12 |
12 |
12 |
12 |
12 |
72 |
|
Employees Used |
|
|
|
|
|
|
|
|
Service Hours |
480 |
480 |
480 |
480 |
480 |
480 |
2880 |
|
Available |
|
|
|
|
|
|
|
|
Over time hours |
96 |
0 |
120 |
0 |
0 |
96 |
312 |
|
Needed |
|
|
|
|
|
|
|
b. Total Cost = Regular-time labor Cost + Overtime Cost
Total Cost = (2880 hours)($25 per hour) + (312 hours)($37.50 per hour) = $83,700
c. This plan uses a uniform level of resources and costs $83,700. Therefore, it will be easy to implement as it uses the same number of employees each period. Under this plan, supplementing the permanent workforce of 12 employees by over-time yields considerably lower total costs than the chase aggregate plan in #18.