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

question 93

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. 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:

• A) less than or equal to $125,000.
• B) greater than $125,000 but less than or equal to $125,500.
• C) greater than $125,500 but less than or equal to $126,000.
• D) greater than $126,000.

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