A Retailer Experiences a Seasonal Demand Pattern for Its Services

Essay

A retailer experiences a seasonal demand pattern for its services.Labor requirements over a typical six-month period follow.
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Requirement } & 7 & 8 & 9 & 11 & 12 & 7 \\\hline\end{array}$$
Costs associated with operations are as follows:
Wages = $2,000 per worker per month
Hiring cost = $1,000 per worker
Layoff cost = $1,500 per worker
The current workforce level is 10 workers.Use the spreadsheet approach and the above data to answer the following questions:
a.The total cost of the staffing plan (including the cost of regular wages,hiring,and layoffs)using a chase strategy with hiring and layoffs,but no overtime,is
b.The total cost of the staffing plan,using a level strategy where no overtime is allowed,and the undertime paid for,is
c.Suppose that overtime is allowed up to 25 percent of the regular-time capacity,and that overtime wages are 150 percent of the regular-time rate.The total cost of the level strategy with overtime and undertime,which also minimizes undertime,is