Table 10.3 A Large Distribution Center Uses Some Part-Time Employees in Its

Multiple Choice

Table 10.3
A large distribution center uses some part-time employees in its workforce. Each part-time employee works a maximum of 80 hours per month. The workforce requirements (expressed as the number of part-time employees working the maximum regular time of 80 hours per month) are given in the following table for the next six periods.

The relevant costs are:
Wages = $350/month/worker
Hiring cost = $100/worker
Layoff cost = $50/worker
Overtime cost = 150% of regular-time rate
The current workforce level is 60, and overtime cannot exceed 25% of regular-time capacity.
Use the spreadsheet approach to answer the following questions.
-Use the information in Table 10.3. Use a chase strategy with hiring and layoffs but no overtime. How many workers will be hired in month 3?

A) fewer than or equal to zero
B) greater than zero but fewer than or equal to 10
C) greater than 10 but fewer than or equal to 20
D) greater than 20